As landlords increase their portfolios in areas experiencing proven tenant demand, annual rents have rocketed with yields holding steady at 6 per cent.
John Heron, Paragon’s director of mortgages, said: “There is solid and growing demand for decent, affordable rented homes in all parts of the country, but it is essential landlords purchase the type of property that meets tenants’ needs and expectations.
"These figures show that professional landlords continue to invest in the types of property where there is strong and sustainable tenant demand.”
In addition, there continues to be strong growth in demand for rented accommodation from immigrants to the UK, with the Government’s recent announcement that 300,000 more foreign migrants have arrived in this country than had previously been announced.
“Whilst we may be entering a period of slower homebuying activity, the underlying demand for homes continues to grow as the UK population swells, new households are formed and the population gets older," continued Heron. "That translates into buoyant tenant demand for a limited supply of rented homes."
