Buy to let mortgage holders could raise rent, says Paragon

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Buy to let mortgage holders could raise rent, says Paragon

Tue 22nd Mar 2011

Paragon has told landlords they may be able to raise their rental prices due to the level of demand currently being seen.

Nigel Terrington, group chief executive, stressed that buy to let mortgage holders should not make properties "unaffordable" for potential rentors.

But he pointed out that many landlords have been have been able to increase rental income during the first three months of this year.

"Supply and demand dictates rental pricing and landlords are experiencing significant tenant demand for their properties at present," said Mr Terrington.

Research by Paragon shows 32 per cent of property letters have increased their rents since the beginning of 2011.

Five per cent of landlords reported that their rental income has risen by more than eight per cent over the past few months.

Last month, Paragon highlighted a report by Communities and Local Government demonstrating the number of households renting privately went up by one million between 2005/06 and 2009/10.

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