Private rental market set to boom

19 2008
The continued emergence of the private renting sector has greatly contributed to rental income being up nearly 14 per cent over the last year, the latest Paragon buy-to-let index has revealed.

Once viewed purely as a stop-gap en route to buying, private renting is now becoming more popular due to the improved quality of accommodation and high house prices.

A separate Paragon survey of landlords - which showed that the average age of tenants is now 32.8 compared with 31 in 2002 - suggests that people in their thirties and forties and even those with families are increasingly taking up the option to rent.

Managing director John Heron said: "We have known for some time that the tenure of the UK is changing as a growing and more diverse demographic are choosing private rented homes - the percentage of households living in private rented accommodation rose from 10 per cent in 2002, to 12 per cent in 2007."

The news will also alert first-time buyers, who may see renting as a solution if they are struggling to find reasonable mortgage rates in the current downturn in the housing market.

Average annual renting income stood at £12,048 in April, having broken the £1,000-per-month barrier in March.
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