Rental yields have increased by 12% over the past year to reach a two-year high, according to Paragon Mortgages' Buy-to-Let Index.
Its research suggests the average rental yield in the UK reached 6.4% in May, an increase of 12% since May 2007. However, the picture varies considerably between regions, with the North and Wales seeing above average returns, while other parts of the UK experiencing falling yields. The North of England has an average rental yield of 7.2% according to Paragon, up 18.1% since last year, while Wales has the highest rental yield at 7.6%, up 17% in twelve months. Greater London was found to have the tightest yields in the UK at just 5.7%, down 3.8% since last year, with the South East in clos...
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