Contrary to a report published yesterday by the Royal Institute of Chartered Surveyors (Rics), rental yields in the UK's buy-to-let sector remain high, according to a leading lender.
Rics' quarterly assessment of the rental market concluded that the Bank of England's interest rate rises had eaten into profits and dented landlord confidence.
Specialist provider Paragon Mortgages, however, points to a steady rise in the number of private rental arrangements since the turn of the millennium, with supply growing to match increasing demand for accommodation.
"We have seen steady activity on the part of residential property investors, who are growing their portfolios in response to additional demand from a variety of different types of tenants, including foreign migrants, young professionals, families and students," said Nigel Terrington, chief executive of the Paragon Group.
Against this backdrop, rental yields have remained steady at six per cent for the past six months, notwithstanding house price rise, he continued.
Recent figures from the Department for Communities and Local Government demonstrate that 2.4 million households in the UK currently rent privately, an annual increase of four per cent and up 22 per cent since 2001.
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