According to Paragon, the average rental yield for UK properties in August was 6% for an average-priced property of £178,566 with an average rental value of £10,626.

Paragaon data shows rents have increased by an average of 2.4% over the past 12 months. Regions achieving the highest rents per annum were London (£19,981), the South West (£11,978) and the South East (£10,964).

Over the past year, investment property values have also risen by 4.2% to £178,566 but have dropped from July’s figure of £181,533. London raced ahead with the highest property price in the UK (£360,465), followed by the South West (£197,700) and the South East (£187,932).

Yields in the UK continue to be stable at or above 6% as they have been for over a year. The North West achieved the highest yields at 6.5%, followed by the East and West Midlands and Yorkshire at 6.4%.

Total returns on a property purchased 12 months ago stood at 10.3%, with the South West achieving the best returns at 17.6%, London 17.2% and Yorkshire at 14.9%.