Mortgages -
Paragon: Buy to let is going strong - 28/01/2008
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Buy to let mortgage specialist Paragon has released new research, showing a strong performance from the sector at the end of 2007.
Rents rose by 19 per cent in 2007 - with an eight per cent increase in the last quarter.
What's more, the total landlords' rate of return grew three times over the 2006 figure to hit 21 per cent.
The strong rental performance contrasts starkly with the apparent weakening of the housing market as a whole - and could point to nervous borrowers preferring to remain in rented accommodation rather than risking taking out a mortgage of their own.
John Heron, managing director of Paragon Mortgages, said: "There's been fall in consumer confidence in recent months, but this appears to be to the benefit of established landlords.
"With a cooling in the rate of increase of house prices, yields have also picked up this month and we expect that trend to continue throughout 2008."
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