Rents growing faster than house prices - Paragon

Paragon’s July buy-to-let index shows that average rents have risen 12.8% to £10,938 in the first six months of 2007. During the same period, property prices have risen just 10.5%, from £162,776 to £179,793, according to Paragon. John Heron, managing director of Paragon, says: Rising borrowing costs deter many people from committing to buy a home, as they defer their property purchase decisions until the interest rate outlook becomes clearer. Instead, many will choose to rent from a private landlord, leading to a further expansion in tenant demand for rented properties.” The Paragon i...