Rental yields have risen to 6.4%, the highest level since February 2006, according to the latest June Buy-to-Let Index from Paragon, reporting figures for May.
Investment property values dropped for the second consecutive month in May. Regions achieving the highest property values are Greater London (£351,045), the South West (£234,797) and the South East (£198,901).
The regions achieving the highest rental incomes in May were London £19,877, South West £16,365 and South East £11,978.
Average rental incomes were £11,952 in May, an 11.7% annual increase. Rents continue to rise in five out of ten regions in the UK.
The average property purchased twelve months ago has generated an overall return of 13.6%, taking account of both capital gain and rental income.
