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House prices experienced modest growth in June. London continues to be the primary driver for growth with average prices in the capital rising by 1.1% over June. Further away from the capital, growth remains more subdued.
In terms of the investment market, average rents achieved on residential investment properties remain steady according Paragon Mortgages’ Buy-to-Let Index. In May, the typical landlord earned a gross rental income on each property of £10,189, or just over £849 per month, a rise of 0.8%. This compares with April’s figure of £10,113 and March’s of £10,082.
While nationally rents were stable, different regions saw greater variation: the North, Yorkshire, Greater London and East Anglia all saw significant rises in rents, while in other regions rents were more stable or eased slightly. Despite some momentum in the market, overall, property prices look set for a cooler period in the second half of the year and buyers are beginning to trim back their offers.