The yields that can be expected by landlords increased during the second quarter of the year, according to the latest figures for the market.

Paragon’s Private Rented Sector Trends Survey revealed that landlords achieved an average yield of 6.5 per cent, an increase from 6.2 per cent in the first three months of the year.

The report indicated that professional landlords achieved a higher average yield than the smaller-scale landlords surveyed, reaching 6.9 per cent – an increase on 6.5 per cent in Q1.

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.”

He said it was no surprise that experienced landlords achieved better yields, with the improved returns created by their choice of property type and management of their portfolio.

Rushbrook & Rathbone recently revealed that landlords are continuing to increase the number of properties they own.

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