The North/South divide is alive and well when it comes to the buy-to-let mortgage market, according to specialist lender Paragon Mortgages.
But it is the North which comes out on top in Paragon's latest customer survey, showing the highest gross and net returns on residential investment property are found north of Watford.
Returns in the North are higher as a percentage of outlay and landlords can expand their property portfolios for less cash because of lower house prices, says Paragon.
The figures show buy-to-let borrowers in the North-west report gross returns of 14.6 per cent per property and in the North-east gross returns average 13.7 per cent.
Across Southern Britain, the average is only 10.8 per cent gross per property.
The highest net returns are in the North-west with 7.9 per cent in and the North-east with 7.7 per cent. In the South-east, the net return is 6.4 per cent and 5.8 per cent in the South-west.
Paragon managing director John Heron says: “The returns are higher than might have been expected in the North. This is probably due to the nature of our customer base. Many buy-to-let customers are increasing the size of their portfolios relatively quickly and are becoming professionals in the letting market.”