The March Buy to Let Index from Paragon Mortgages reports that rents continue to rise on the back of strong demand.
Property investment values reached £187,597 in February, up 1.5% from £184,908 in January. Gross rental yields remained stable at 6.3% in February. Regions achieving the highest yields in February were Wales (7.6%), the North West (7.3%) and the North (7.2%).
Terraced houses continue to generate the highest yields (6.9%), followed by detached (6.6%), semi-detached (6.5%) and flats (5.7%). The average property purchased 12 months ago has generated an overall return of 17.0%, taking account of both capital gain and rental income.
Rents are continuing to rise on the back of strong tenant demand. The average rental income in the UK reached £11,886 in February - up 2.4% over the month and 5.2% over the past quarter.
