The January Buy-to-Let Index from Paragon Mortgages reveals a New Year pick-up across the board, with rising rental incomes, property values and rental yields.
In England and Wales, average rental incomes rose by 1.22% over the month from £10,363 in December to £10,489 in January - a higher percentage than the growth in property values, which were up 0.68% this month. Over the last three months rental incomes have increased by 3.33%. The rise in rents served to improve rental yields achieved by landlords, which rose from 6.42% in December to 6.45% in January.
John Heron, managing director of Paragon Mortgages, says "With demand for rented accommodation from tenants steady or growing in many areas, landlords have been able to achieve higher rental yields, notwithstanding the continued rises in property values we've been seeing recently".
