Semi-commercial property now averages yields of 7.3% while average yields for multi-unit freehold blocks have fallen over the last quarter now standing at 6.2% compared to 7.1%.
Mortgage for Business said this was due largely to a new product range being introduced by one lender designed to attract smaller properties.
Average yields on mainstream “vanilla” buy-to-let properties also increased over the first quarter of 2012, up from 6.1% in Q4 2011 to 6.2%.
The average overall number of buy-to-let products available over the quarter and the number of lenders operating in the sector has remained unchanged quarter on quarter.
Over the past three months 25 lenders offered an average of 442 buy-to-let products; on 23rd March 472 buy-to-let mortgage products were available, the highest number of “off-the-shelf” products available so far in 2012.
David Whittaker, managing director of Mortgages for Business, said: “Complex buy-to-let properties are becoming increasingly attractive to landlords and professional investors.
“Average yields on HMOs for example eclipse even the most lucrative traditional rental house or flat and can provide investors with a diverse and robust portfolio.
“With the end of the first-time buyer stamp duty holiday likely to have a negative impact on the owner-occupier market and the government’s NewBuy scheme unlikely to cover the shortfall, landlords and property investors will be relied upon even more in 2012.
“The good news for landlords, though, is that for those that look beyond mainstream buy-to-let, there are plenty of opportunities to grow their portfolios and push their businesses forward.”
