Over the past year rents have increased by an average of 6.9%, according to data from Paragon Mortgages.

Average rental incomes increased to £10,718 in September – up from £10,626 in August, with London (£20,392), the South West (£11,328) and the South East (£10,900) achieving the highest rents.

Regions achieving the fastest growth in rental incomes over the past 12 months are the West Midlands (16.2%), the North (14.4%) and East Anglia (11.5%).

Paragon Mortgages said that rental yields have remained broadly stable, at or above the 6% mark for over a year. Regions with the highest yields are the North West (6.5%) the West Midlands (6.5%), Wales (6.4%) and the East Midlands (6.4%), it added.

Property Investment
Meanwhile, investment property values rose in September to £180,057 – an increase of nearly 1% on August figures. The average price of an investment property has risen 8.2% over the past year. Regions with the highest annual property value appreciations are London (19.5%), East Anglia (18.3%) and the North (14.3%).

Detached houses have highest rents
At £15,055, detached houses have the highest rental incomes and achieved the largest increase in yields – up 2.1% in the past month. Terraced houses have the highest annual increase in rents (10.4%), while at 8.6% flats have grown in value the most over the last year.

Paragon also reported total returns on a property purchased 12 months ago (including capital gain plus rental income) standing at 14.2%, in September. Regions achieving the highest total returns are London (25.1%), East Anglia (24.5%) and the North (20.6%).