Buy-to-let property booming

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Those who have invested in buy-to-let properties are benefiting from a continuing upward trend, according to new figures.

Paragons Buy to Let Index shows that yields, property values and rents all rose in February this year.

Since November rents have risen by 6.39 per cent from £9,954 to £10,590, while property values also increased last month by 0.50 per cent.

Commenting on the findings, John Heron, managing director of Paragon Mortgages, said: "Increasing yields, rents and property values are only part of the positive story surrounding the buy-to-let market.

"At Paragon we are seeing application flows significantly ahead of last year, with completions some 60 per cent higher than a year ago, and data from the Council of Mortgage Lenders shows that gross buy-to-let mortgage lending in [the second half of] 2005 reached a record high," he added.

The future for those with buy-to-let property seems to be bright, with Mr Heron saying that tenant demand is likely to increase "as house prices continue to rise and buyers find it harder to get onto the property ladder".



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