Investors in the buy-to-let market are benefiting from the property boom as rising house prices force many potential first-time buyers to continue renting, research claimed today.
The lender Paragon Mortgages said landlords were filling the void left by first-time buyers who could no longer afford to get on to the property ladder, by purchasing properties and renting them out.
Overall the group said the buy-to-let market remained healthy with yields, income and property values stabilising during the four weeks to the end of last month.
Average rent yields, which measure rent as a proportion of the price paid for the property, rose to 7.97 per cent from a low of 7.91 per cent in January, while the average price landlords paid for a property fell from £111,997 to £109,669.
At the same time, the price of property rose by about 19.4 per cent during the past year, and rental incomes remained stable, averaging £8,750.
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