The largest increases occured in the South East where average capital values have increased by 11.5 per cent to £183,300, from £166,200. While in the rest of the country the average increase over six months is a more modest 2.7 per cent, which has seen prices rise from £96,700 to £99,300.
John Crossley, chairman of ARLA, said: "This is a snapshot of the buy-to-let market. It shows that investor landlords have made unexpectedly high capital gains at the expense of high yields, but in any event high yields are not a feature in a low inflation, low interest rate economy.
"Although buy-to-let represents less than ten percent of all rentals, and there is still plenty of scope for further investment in the Private Rented Sector, investors must take proper advice from letting agents and their financial advisers before making decisions."
