Rental yields continue to climb

Buy-to-let investors have seen average gross rental yields edge up to 6.2% in June 2012 compared to 6.0% 12 months earlier, BM Solutions claims.

The increase has been primarily driven by a 5.3% growth in average rental income across Britain over the past year.

Regionally rental yields vary with the highest returns in the North (7.0%) and the lowest in London (4.8%).

The North is followed by the North West, Yorkshire and the Humber (both 6.5%) and Wales (6.2%).

The lowest yields are all in southern England, with East Anglia, South East and the South West all recording returns of just over 5%.

Nationally the average monthly rent increased from £697 per month in June 2011 to £734 in June 2012, a rise of 5.3%.

However, there has been significant variation in rental growth between regions over the past year.

Read the full story at Mortgage Introducer

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