In England, average yields fell less than a percentage point and remained at 4.8 per cent, while London saw a greater annual decline of 0.2 per cent to yields of 4.1 per cent.
Areas which reported growth include the North East, where there was an annual increase of 0.12 per cent to yields of 5.1 per cent.
On a more local scale, Corby saw an uplift of 0.7 per cent while Charnwood, Newcastle and Exeter experienced jumps of 0.5 per cent.
The average rental yields in these areas now stand at 4.5 per cent, 3.5 per cent, 5.6 per cent and 5.5 per cent respectively.
Harlow in Essex and the Orkney Islands reported growths of 0.4 per cent to 4.5 per cent and 5.2 per cent. Ealing also reported a 0.4 per cent growth, the largest increase of all London boroughs, with yields now at 4.1 per cent.
While Glasgow saw a marginal decline of 0.3 per cent, the current average rental yield of 7.87 per cent makes it the strongest in the UK buy-to-let sector.
Sourced Capital managing director Stephen Moss noted that Covid-19 was presenting additional hurdles such as rental arrears and longer void periods.
“Turning a profit in the buy-to-let sector remains a tough ask with a number of government changes denting profitability and yields remaining largely flat,” he said.
“Buy-to-let returns are based on fine margins and so an annual increase of 0.7 per cent isn’t as insignificant as it may seem.”