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Rents and property prices are both rising at eye-watering levels, as the housing market continues to bloom.

Average private-sector rents in the Dunstable and Houghton Regis area currently stand at a healthy £725 per month and it was reported that nationally annual yields for buy-to-let landlords have risen to 7.4%.

Across England and Wales, the average asking price has broken the £250,000 barrier after rising by 2.8% in October.

In Dunstable and Houghton Regis average house prices are 6% higher than 4 years ago and 5% higher than 2 years ago. In the last 6 months alone the average house price has risen 2%

The launch of the second stage of the Help to Buy Scheme in October – three months earlier than planned – has coincided with an astonishing rise in property prices in parts of the country.

Rightmove believes that first-time buyers could continue to struggle, despite the greater availability of 95% mortgages proffered by the scheme.

Though the increases in London were not sustainable, it said, the scheme would prove more useful to buyers in less heated areas because the prices made even just a 5% mortgage more challenging for new buyers to afford.

At an average asking price of £239,197 in Dunstable and Houghton Regis, a 5% deposit would still amount to £11,960.

Record Rent Levels

Conditions are also becoming more difficult for those trying to build a deposit, as private-sector rents rise to record levels.

Average private-sector rents in the Dunstable and Houghton Regis area currently stand at a healthy £725 per month.

It was reported that nationally annual yields for buy-to-let landlords have risen to 7.4%.

Private landlords have been boosting their property investments over recent years, as mortgage rates fell following the launch of the Funding for Lending Scheme.

Since they are not locked in a chain of buyers, buy-to-let landlords are often in the ideal position to snap up property at short notice or to negotiate better prices on properties showing less interest.

The current returns on offer are likely to ensure that private landlords remain an active player in the market which is likely to frustrate first-time buyers even more.

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