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Buy-to-let pushes up UK mortgage demand

Date: Wed, 31 Aug 2005

The buy-to-let property market is continuing to boost the demand for mortgages, according to new figures.

The growth of the letting market is particularly strong in Yorkshire and the north-west as student populations in the area steadily increase.

The latest Paragon Mortgages' buy-to-let index shows that rental incomes in Yorkshire rose from £9,383 in June to a total of £10,495 in July – with an increase of 36.7 per cent over the past year, compared to a 12.9 per cent increase for the rest of the UK.

"A number of factors contribute to the sustained demand for rented accommodation in Yorkshire," said John Heron, managing director of Paragon Mortgages.

"The burgeoning student population of England’s largest county, with major universities at Sheffield, Hull, Leeds and York, among others, underpin demand for rented properties."

Mr Heron added that the recent interest rate cut is also likely to boost the demand for buy-to-let mortgages as investors are keen to expand their housing portfolios.


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