Returns on buy-to-let property investments were higher during the last 12 months than they were in the previous year, according to the latest figures from Birmingham Midshires.

Data from the company shows that buy-to-let properties gave their owners an average income of 13% of the house price during the 12 months to June this year, compared to 11.9% in the same period to June 2006.

The company also reports that terraced houses were the best performing type of property in terms of rental yields over the last year.

Tim Crawford, group economist at Birmingham Midshires, said: “The fundamentals underpinning the buy-to-let sector remain sound. While house price growth in the sector is expected to be more subdued, reflecting the impact of higher interest rates, the potential for further increases in rents should encourage long-term investors.”