According to Paragon’s latest buy-to-let index, total UK returns stood at 11.6% in July 2007; their highest level since April 2007.

Regions achieving the highest total returns are Yorkshire (22.1%), Greater London (20.3%), and the South West (19.1%).

In addition, rental incomes have risen 5% over the last 12 months from £10,392 to £10,914, and 3% over the last three months. Regions with the highest rental incomes per annum are London (£21,696), the South West (£12,545) and the South East (£10,814). Regions achieving the fastest growth in rental incomes over the last three months are London (17.1%), Yorkshire (16%) and the North (12.5%).

Yields also remained broadly stable, at or above the 6% mark for over a year. Regions achieving the best yields are the North West, Yorkshire, East Midlands and West Midlands - all at 6.5%. Across the board, terraced houses prove to bring in higher yields at 6.5% than other types of property. Semi-detached homes generate average yields of 6.3%, and detached houses and flats have below average yields of 5.9% and 5.4% respectively.