Across England rental yields saw a minimal rise in January of 0.02% points from 6.03% to 6.05 and those in Scotland jumped 0.11% points from 6.88% to 6.99%.
This development points to a stabilising market picture, which can also be seen in the figures for London, where yields have also seen a small rise. Compared to rental yields from a year ago England however has seen a fall from 6.28% in January 2004 to the current figure of 6.05%.
Scotland still offers the highest yields
Scotland, which has repeatedly outperformed the rest of the UK for the past two-and-a-half years, saw an increase in rental yields of 0.11% points (from 6.88% to 6.99%) in January compared to the previous month. In addition Scottish market rental yields have only fallen by 0.1% points over the past year.
The figures also show that rental yields within London have increased by 0.03% points in January, from 5.96% to 5.99%, over the last month.
Lee Grandin, managing director of Landlord Mortgages, comments: "Rental yields across the country stabilised in January indicating the maturity of the buy to let sector in most parts of the country; demand and supply are now in balance after a softening of yields over the past three years.
"This is good news for landlords who can now expect to benefit from stable and potentially increasing revenues, and fewer void periods. Investors in search of the highest rental yields should consider Scotland but in addition all good, well located city and commuter properties are not experiencing void periods as potential buyers, particularly potential first-time buyers, stay out of the market."
