Buy-to-let landlords get record rent

Buy-to-let landlords are seeing the greatest levels of growth ever in the rental market according to one mortgage provider.

Research by Paragon mortgages shows that over the last quarter there was an average increase of rental incomes of 8.2 per cent powered by an increase of 1.6 per cent over the last month.

There are various factors driving this trend, claims the company.

John Heron, managing director of Paragon Mortgages, said: "The economic environment as well as rising divorce rates, inward migration and an expanding student population, mean that an increasing number of people require rented accommodation and this is driving rents up."

And buy-to-let landlords are optimistic about their situation, with 46 per cent saying that achievable rents had increased over the last six months.

The landlords surveyed also believed that returns will rise from 4.3 per cent to 4.5 per cent over the next year.

It is not just landlords benefiting from the boom. According to the Association of Residential Letting Agents (Arla), the increase in buy-to-let mortgages has meant there are more good landlords and good properties for tenants to choose from.