Professional landlords with property portfolios fared better than their ‘amateur’ counterparts, reaching 6.9%.
Rental yield is defined as a property portfolio’s annual rental income as a percentage of its total value.
When quizzed about levels of tenant demand, 36% said they believed it is growing, while 55% think demand is stabilising right now. Going forward, 44% expect demand to rise over the next 12 months.
A fifth of buy to let investors plan to buy another investment property in the next three months.
John Heron, managing director of Paragon Mortgages, said: “Strong tenant demand has continued to place upward pressure on rents and we have as a result seen yields strengthen despite the pressure on consumers.
“It is no surprise to see that more experienced landlords achieve better yields with this being driven by their choice of property type and their approach to management.”
