One in ten properties in the UK are now providing gross rental yields of 10% and above, whilst the average yield is 6.2%, according to Countrywides 2012 Lettings Index.

Countrywide also revealed that of all the properties purchased and rented through it during 2012 around half achieved gross rental yields of more than 7%.

The stabilisation of house prices and rising rents which could be attributed to the increase in demand, as for the second consecutive year the number of new tenants registering for private rented accommodation has increased by 25%, with more than 340,000 new tenants signing up to let a property in 2012, up from more than 275,000 in 2011.

Nick Dunning, Group Commercial Director at Countrywide, said: "This time last year, Generation Rent, was a growing phenomenon but it appears that its now here to stay, for the foreseeable future anyway. More people are renting because they cannot get on the housing ladder without the help of the bank of Mum and Dad. As a result, they have to rent for longer while saving for a deposit. In fact, the results of a survey commissioned by Countrywide with YouGov in November 2012, showed nearly two thirds (63%) of private renters cited deposit affordability as a factor preventing them from buying at this time. Encouragingly, the survey also revealed that home ownership aspiration remains high as nearly a third (29%) of 18-34 year olds surveyed believed that home ownership in the next three years is an achievable goal."

Buy-to-let mortgage lending in the first nine months of 2012 amounted to £11.8bn, an increase of 19% when compared to the same period in 2011, based upon data supplied by the Council of Mortgage Lenders.

Nick Dunning noted: "The availability of more competitive buy-to-let mortgage products, along with fantastic yields, is creating a good opportunity for investor landlords to expand their portfolios to match the high demand for rental accommodation, as renting for longer is becoming the new norm."

The South of England recorded the highest volume of new tenants registering with Countrywide in 2012 with a 27% rise from the previous year whilst the growth of new tenant applicants was highest in the North of England, where a 49% increase to almost 63,000 was recorded. Figures also indicate that the average rent in England, Scotland and Wales in 2012 was £827 per month and in London, more than £1,600 per month.