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All news items supplied by SelectNews, produced by PA Business, part of the group that owns The Press Association, the UK's national news agency. Copyright (c) PA Business 2007.
2 May 08 - Monthly Home Rent Costs Hit £1,000
The average cost of renting a home is now more than £1,000
a month, figures have shown.
Specialist lender Paragon said strong demand due to turbulence
in the mortgage lending market saw the average cost of renting
a property in England and Wales reach £1,003 a month
in March, a rise of 4% during the past quarter and 12% during
the past six months.
The group said rents were being pushed up by buoyant demand,
which was creating a strain on the number of properties
available in the sector, and this trend was likely to continue.
It said a third of landlords reported tenant demand to
be "expanding rapidly" during March, the highest
figure for nearly four years, with a further 58% saying
demand was "strong and stable".
Rising rents helped keep yields stable at 6.3% for the
third month in a row, the group said.
John Heron, Paragon's director of mortgages, said: "The
backdrop for buy-to-let remains positive across the country.
"Potential residential purchasers are reluctant to
buy in the current market or are unable to secure a mortgage
and this is fuelling extra demand for rented accommodation."
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