The North East of England has taken the lead as the UK’s top region for rental yields with landlords achieving average returns of 8.13% according to a lender’s report.

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The region outshines others like Wales (8.07%) and the North West (7.84%).

Additionally,the report highlights the robust rental yield potential in Yorkshire and Humber,where landlords can expect returns of 7.54% placing the region fourth on the national rental returns table.

The lender’s managing director of mortgages, Louisa Sedgwick, said: “Our latest report draws on industry data to reveal that during the last decade, the north of England has surpassed the south in terms of the proportion of buy to let home purchases.

“I think one of the reasons why the region has increasingly gained the attention of landlords is the opportunity to generate strong returns on investment.”

She added: “Demand for rented homes is high in the north, as it is across the UK, and with property that can be significantly more affordable to buy compared to southern regions, landlords are able to respond, confident that they will be able to achieve above average yields.”

According to the Office for National Statistics housing affordability report the most affordable local authorities In England and Wales are situated in North East, North West and Yorkshire and Humber comparing house prices to annual workplace-based earnings to highlight                   housing affordability.

In England and Wales during 2023, homes cost an average of 8.3 times a full-time worker’s annual salary.

In the North East, North West, and Yorkshire & Humber, only four local authorities had house prices that exceeded eight times the average earnings.