According to the Private Rental Sector (PRS) Trends quarterly survey carried out by Paragon, that was the highest average yield of the year, up from 6.1% in the third quarter.
Exactly half of the landlords surveyed (50%) said that tenant demand was either growing or booming during Q4, up from 44% in Q3.
This positive trend looks set to continue through 2012, with 56% of landlords believing demand will keep growing.
Around 20% of landlords said that they plan to buy more buy-to-let property in the first quarter of 2012.
Terraced houses are the most popular choice for buyers at 64%, followed by semi-detached properties at 28% and flats at 21%.
Nigel Terrington, chief executive of Paragon Group, said: “The final quarter of last year proved to be very positive for landlords and for many of those that provided feedback in the Trends survey, the most successful quarter of the year. It is no surprise with the ongoing pressures on the wider housing sector that landlords are still experiencing increasing tenant demand, which looks set to continue throughout the coming 12 months.
“It is also interesting to see that in general, landlords expect 2012 to be a steady, stable year with continuing opportunities to achieve healthy yields and make further property purchases.”
