This marks a 28-month high, with the typical landlord generating more than £34,000 in rent over the last year.
The average value of buy-to-let property has also been strong, rising by 15.3 per cent over the year. Yields have remained at 6 per cent or above throughout 2007 as landlords have been able to increase rents in line with property values.
Regions that have enjoyed the best total returns in 2007 are London, the East Midlands and the South West, with the East Midlands achieving the fastest annual growth in rents over the year.
Yorkshire and the North West achieved the best yields during the year, with both regions at 6.8 per cent.
John Heron, Paragon’s director of mortgages, said: “An investment linked to the FTSE All Share made a year ago would have yielded just over 7.4 per cent from both capital appreciation and dividend yield, while the highest yielding internet savings accounts earn around 6 per cent. In comparison, the return of 21 per cent on buy-to-let looks particularly attractive."
