Landlords up north lead the way as rents increase

21 April 2005
The latest Buy-to-Let Index from Paragon Mortgages has revealed that landlords in Yorkshire and the north-west are leading the way as rental yields increase across the country.

According to the index, these northern areas have seen the best returns for buy-to-let landlords over the last year, fuelled by the combination of appreciation in property values and rental incomes.

A landlord who bought an average property in Yorkshire a year ago would have generated a total return of 76.4 per cent last year and 42.7 per cent in the north-west, compared with an average total return across the country of 21.3 per cent.

Rental yields are up across the whole country according to Paragon, however, with London - usually one of the lowest yielding regions - upping yields by 3.9 per cent.

"Due to sustained demand rental incomes have risen more rapidly than property values, which have in turn had a positive impact on rental yields," explained John Heron, managing director of Paragon Mortgages.

Other areas that saw increases in yields were East Anglia (8.2%), the East Midlands (5.9%), the north (2.1%), the north-west (0.8%), the West Midlands (0.6%) and Yorkshire (0.4%).

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