Buy-to-let investors saw their rental income rise for the first time in six months as 2005 drew to a close, new figures show.
Overall, rental yields in England were up to 6.03 per cent from 5.87 per cent in the last quarter of 2005.
This follows six months of yield falls in the country, according to research by Landlord Mortgages.
Scottish buy-to-let investors saw their yields fall in the last three months, but these remain above levels in England at 6.53 per cent.
"Despite dire predictions for the future of the buy-to-let industry at the start of 2005, last year saw the overall market stabilise and remain healthy," said Lee Grandin, managing director at Landlord Mortgages.
The research also showed the narrowing of the gap between returns in London compared with the rest of the country.
Mr Grandin put this down to high property prices in the capital fuelling the need for rental property.
He was also upbeat about the future of the market: "We firmly believe that 2006 will see a vibrant buy-to-let market across the UK with growth driven by increased consumer confidence and high demand." To read more Property News, click here.
© Adfero Ltd