Average rental yields have risen once again from 6.8% to 6.9% according to the latest Buy-to-Let Index from Paragon Mortgages.

Yields rose across most parts of the country: London (3.9%), East Anglia (8.2%), the East Midlands (5.9%), the North (2.1%), the North West (0.8%), the West Midlands (0.6%) and Yorkshire (0.4%).

John Heron, managing director of Paragon Mortgages, said, "This month, rising yields in London and East Anglia have driven an overall increase in yields across the country. Over the last five months we have seen a sustained firming of yields in Greater London - which is good news for landlords in and around the capital."

Over the past year UK buy-to-let landlords in Yorkshire and the North West have benefited the most due to a combination of capital appreciation and rental incomes. A buy-to-let investor who purchased an average property twelve months ago would have generated a total return of 76.4% in Yorkshire and 42.7% in the North West. The average total return across the whole country is 21.3%.

Monday 2 May