According to Paragon’s December 2007 Buy-to-Let Index, total returns (rental income plus capital gains) of an average property purchased 12 months ago has reached 21.3% in November which is also its highest level since August 2005.

Highest total returns were achieved in London (39%), East Midlands (30.7%) and the South West (21.3%).

Rents have also risen by 16.9% over the last year and 6.3% over the last quarter, to stand at £11,300 in November. London (31.1%) and Yorkshire (23.9%) continue to generate the highest rental income but the East Midlands experienced the fastest annual growth in rents at 35.9%.

Average investment property values have risen by 15.3% over the last 12 months to stand at £187,164. The region with the highest annual property value rise is London (33.5%).

Yields also remain stable at around 6% for the 20 th consecutive month. Regions achieving the highest yields are the North West and Yorkshire (both at 6.8%).

Lastly, terraced houses continue to generate the highest yields for investors at 6.6%, and the highest annual value appreciation of 20.4%. Semi-detached properties generate the second highest yields at 6.1%, followed by detached (5.9%) and then flats at 5.4%.