Landlord returns up

Landlord returns are at a 15-month high, after prospective buyers choose to rent instead due to a lack of confidence in the housing market, research from one insurer has revealed.

According to Paragon, the increased demand for rented accommodation is a direct consequence of people being put off purchasing property in the face of an "uncertain economic environment".

Landlords’ total returns are up to 14.2 per cent from 12.9 per cent in March of this year.

Rents have also risen by 6.9 per cent in a year - the equivalent of £700.

Nigel Terrington, Paragon’s chief executive, said the current situation meant people have more choice of the type of accommodation they live in.


He explained: "The growth of the buy-to-let market has given these people more options – before it was either live at home or buy a property, even if it meant you were financially stretched, and we saw the consequences of that in the early nineties with mass possessions.

"Now, the private rented sector is offering good quality alternatives to house purchase, enabling people to live in a quality of home they may not necessarily be able to afford to buy."

Greater London was the area with the highest percentage of returns in the country with 25.1 per cent.