A major online property portal’s latest published rental yield shows that the UK’s average rental yield is 5.5 per cent which is the highest yield since five years ago when it was 5.6 per cent in 2016.

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Both the North East and Wales have enjoyed record high yields and London, South West and Yorkshire have all hit their highest yields since 2015. Yields in the South East and East of England’s yields are their highest since 2016.

The figures come from the online portal’s rental market tracker monthly reports, this also claims that average rents are on the rise with the quickest surge recorded and outside of the capital, now stands at £1,068 per month which is 9.9 per cent up on the corresponding time last year.

The good news is that the average rental growth is far faster than house price growth except for three areas - East Midlands, South West and the South East.

Meanwhile in the capital, rents have also set its new record monthly average of £2,142 pcm, this is the highest quarterly jump throughout the whole of the UK.

Rents in London are now higher than pre-Covid levels and are three per cent higher than January 2020.

However it is not plain sailing for tnenats as supply dwindles in face of increasing demand which is twice as high since January 2021 for letting properties.

In fact renter demand is around 32 per cent higher than the same time last year but the big issue is that available properties for letting is 51 per cent lower.