Yorkshire rents hold steady

The August edition of Paragon Mortgages’ Buy-to-let Index shows that despite a seasonal slowdown, regions such as Yorkshire and the North-West continue to outperform other parts of the country.

Yorkshire saw rental incomes rise from 9,383 in June to reach 10,495 in July. Over 12 months, rents in Yorkshire rose by 36.7%.Landlord property values in the region have increased by 38.6% since July 2004 to reach 143,684.

Despite a steep increase in property values, Yorkshire remains one of the highest yielding regions in the country at 7.3%.

John Heron, managing director of Paragon Mortgages, says: “A number of factors contribute to the sustained demand for rented accommodation in Yorkshire. The student population of England’s largest county, with major universities in Sheffield, Hull, Leeds and York underpins demand.

“Many students after graduation remain in the county and as first jobbers look for shared accommodation with friends in the major towns.”

The North-West has also seen a strong buy-to-let market over the past year, notwithstanding a slight decline in rents in August.

At the same time Greater London, consistently one of the lower yielding regions, saw yields rise slightly to 5.8% this month as both rental incomes and property values rose.

Heron adds: “Despite a cooler summer market, landlords remain cautious yet opportunistic buyers. September is a busy time in the rentals market with many people starting new jobs and, of course, the new academic year.

“We’ve seen a reasonable flow of property investment in many parts of the country as landlords look to purchase suitable properties in advance of demand.”