Indeed the current value of a buy-to-let property stands 10.9 per cent higher than 2006 at £154,795, compared to the £197,039 seen for an owner-occupied property in December 2007.
This gap is fuelled by the fact that the typical buy-to-let property is smaller, with the market dominated by flats and terraced houses rather than semi or fully detached suburban family homes.
On top of this, investment properties are generating 2.8 per cent more income than they did in 2006 with average gross returns last year hitting 16.3 per cent.
BM's research showed that the Northern Irish buy-to-let market reaped the highest returns during 2007, driven sharply up by a strong local economy, high levels of immigration and a growing interest from investors in the Republic of Ireland.
However there is no doubt that the buy-to-let market has cooled off following a swift succession of Base Rate hikes and a lending squeeze, with investors waiting in the wings to get the timing right.
In contrast to previous years, the only other regions to see a double-digit increase in capital value were Greater London, and the South. The smallest regional increases over the past year were by 5.7 per cent in the East Midlands and the 7.2 per cent in the North West.
The largest increases in regional rental values over the same period were in Scotland (22.6 per cent), the North (18.2 per cent) and Greater London (15.4 per cent).
Greater London properties command an average rent of £1,293 per month, nearly £300 per week, however yields are highest in Scotland and the North.
