Average rental incomes increased to £10,718 in September - up from £10,626 in August - according the latest Buy-to-Let Index from Paragon Mortgages. Over the past year rents have increased by an average of 6.9%.
Regions achieving the highest rents were London (£20,392), the South West (£11,328) and the South East (£10,900). Average property value has risen from £178,566 in August to £180,057 in September. Over the past year property prices have risen by 8.2%. The highest property values are in London (£366,428), the South East (£190,443) and the South West (£189,973). Yields have remained stable at or above 6.0% for over a year. The North West (6.5%) the West Midlands (6.5%), Wales (6.4%) and the East Midlands (6.4%) achieved the highest yields. Total annual returns on a property purchased 12 months ago stands at 14.2% in September, with London achieving the best returns at 25.1%.
Yields have remained broadly stable, at or above the 6% mark for over a year. Regions with the highest yields are the North West (6.5%) the West Midlands (6.5%), Wales (6.4%) and the East Midlands (6.4%).
Property values rose in September to £180,057 - an increase of nearly 1% on August figures. The average price of an investment property has risen 8.2% over the past year. Regions with the highest annual property value appreciations are London (19.5%), East Anglia (18.3%) and the North (14.3%). Rental incomes have risen this month by 0.9% - up from £10,626 in August to £10,718 in September. Regions with the highest rental incomes are London (£20,392), the South West (£11,328) and the South East (£10,900). Regions achieving the fastest growth in rental incomes over the past 12 months are the West Midlands (16.2%), the North (14.4%) and East Anglia (11.5%).
Total return on a property purchased 12 months ago (including capital gain plus rental income) stands at 14.2%, in September. Regions achieving the highest total returns are London (25.1%), East Anglia (24.5%) and the North (20.6%). At £15,055, detached houses have the highest rental incomes and achieved the largest increase in yields - up 2.1% in the past month. Terraced houses have the highest annual increase in rents (10.4%), while at 8.6% flats have grown in value the most over the last year.
