Rental yields rose slightly last month, raising hopes that the steady decline seen since November 2001 has come to an end, according to Paragon Mortgages.
The buy-to-let lender's new monthly index reveals that yields rose to 7.99 per cent last month from a low of 7.91 per cent in January. One year ago, yields were 9.57 per cent and in November 2001 they were 10.02 per cent.
Managing director John Heron says: “With the recent cooling of the property boom and more properties coming on the market, landlords are currently able to negotiate excellent deals on property. They are showing no signs of cutting back their investment in property.”