The average annual UK residential rental figure being paid is £10,082, with rental yields averaging 6.26%, according to Paragon mortgages.

Rental yields are highest in the East Midlands, with Wales second. Areas with the lowest house prices typically offer the highest rental yields.

John Heron, managing director of Paragon Mortgages said: "We have identified a significant upsurge in landlords confidence and activity over the past three months or so.

"They are actively growing their portfolios and in our landlord survey they tell us that over the next 12 months they plan to increase their property holdings by around six per cent, on the back of growing tenant demand and an expectation that rents will rise."