UK rents rise in February

Posted: 01 Apr 2008 11:11:01 GMT

New figures show that average rents increased in February, as demand for rented accommodation also rose.

New figures show that average rents increased in February, as demand for rented accommodation also rose.

Paragon has published figures, revealing that typical UK rents increased from £11,604 in January to £11,886 in February.

It comes as fewer people are able to make it onto the property ladder, prompting a surge in people seeking rental accommodation.

Landlords appear to be one of the few groups benefiting from the global credit crunch but Paragon pointed out that only long-term investors are seeing any real benefits.

"The message is clear - experienced landlords continue to regard property investment as a sound business, providing as it does a roof over the heads of those people who through choice or circumstance rely on the private rented sector for their accommodation needs," said John Heron, director of mortgages at Paragon.

"They hold their property investment assets for more than ten years, and decide to buy or sell based on sound commercial considerations rather than short-term signals in house prices or economic sentiment," he continued.

The Association of Residential Letting Agents recently revealed that rental returns increased by 0.27 per cent in March.

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