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70% of regions see landlord rental incomes rise

Rents increased in seven regions, with the largest rise in Wales, up 11.4% to £8,859, the East Midlands up 6.3% to £9,721, and the West Midlands up 5.5% to £9,499.

Rental incomes in both the North-West and East Anglia rose by over 3% to £7,009 and £8,854 respectively, while smaller rises were seen in the South-West and Yorkshire. Five out of 10 regions are now registering rents of over £9,000 per year.

However, with declines in the other three regions, rents were almost unchanged nationally &#45 at £9,524 compared with last month&#39s £9,598.

Over the past 12 months rental incomes in Wales have risen by 16.2%, the East Midlands by 26.4% and the West Midlands by 26.7%.

Property values have also risen in August across eight of the ten regions, with Wales up sharply by 11.06% to £126,576, the West Midlands up 7.3% to £132,853 and the South-West up 5.66% to £181,035. Smaller rises in values were seen across the remaining regions except

the North and the South-East, where prices fell slightly.

Average property values are now £141,765, as compared with £124,128 in January, a significant increase of 14%.

John Heron, managing director of Paragon Mortgages, says: “Landlords across the majority of the country are seeing a rise in rental incomes, fuelled by solid demand from tenants. Those regions witnessing the biggest rent rises were also those which experienced the greatest rise

in property values.

“Prices paid by residential property investors are still increasing, but only very slightly: in August they were up by just 0.8%, in contrast with the large rises seen in the first half of the year, when investors had to compete with owner-occupiers in a busy market with limited stock available.”

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