Rent goes up because houses so expensive

The price people pay for rent has increased by over eight per cent over the last quarter showing that self-building your own property may be a more feasible alternative to high rents.

New data from Paragon Mortgages, which supports landlords, shows that rent price has increased by 1.6 per cent over the last month alone and this is being fuelled by tenant demand.

Moreover, landlords predict that net returns will rise from 4.3 per cent to 4.5 per cent over the next year.

John Heron, from Paragon Mortgages, said: "Demand for private rented property is high - fuelling continued growth in achievable rent levels.

"The economic environment as well as rising divorce rates, inward migration and an expanding student population, mean that an increasing number of people require rented accommodation and this is driving rents up."

Interest rates may well rise this week and if they do people are even more likely to put off buying a house, which means demand for rented properties can only continue to rise.


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