Rental returns are growing at the fastest rate in Reading and Brighton with yields now respectively 12.8% and 12.6% higher than last year, according to recent research by HSBC.

Average residential property yields in Reading now stand at 5.48%, up from 4.86% last year, while in Brighton average yields now stand at 6.17% up from 5.68%. The average Reading property is currently priced at £207,934 while in Brighton average prices currently stand at £242,535. Average monthly rents are now £950 in Reading and £1,248 in Brighton.

Peter Dockar, head of mortgages at HSBC said: "Landlords are reaping the benefit as young professionals say goodbye to capital city living in favour of more affordable commuter towns. Despite the inevitable increase in commuter costs associated with moving further out, many still feel the move is worthwhile in order to save towards property deposits.