The South East excluding London came in second place with an average yield of 6.1%, followed by the South West which generated a yield of 6.0%.
Independent researchers BDRC Continental, working in conjunction with the National Landlords Association, also discovered that the Paragon customers who took part in the survey reported an average yield of 6.9% in Q4, higher than the market average of 5.9%.
The study by BDRC and the NLA also revealed that the highest yielding property type was detached housing, generating an average yield of 6.6%
This was followed by terraced houses and HMOs which generated yields of 6.1% and 6.0% respectively.
John Heron, managing director of Paragon Mortgages, said: “The yield a landlord’s rental property generates is a key indicator of how well the property is performing and is an essential part of the landlord’s overall business plan.
“It is interesting to see the shift in the regions that are taking the top spots in the yield table and the fact that the East Midlands took first place from the West Midlands.
“As we progress into 2012 I suspect we will continue to see changes in yield patterns and how different regions fare against each other; with demand still at a peak I believe landlords will continue to achieve healthy yields in the coming months.”
