According to the latest figures from an online property portal the North East market town of Stockton on Tees, has over the past year experienced a significant surge in new landlords purchasing BTL properties.

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In the past twelve months the property portal has provided 75% more lettings leads for clients making Stockton as having the highest rise in rental demand year on year throughout the UK.

Stockton-on-Tees landlords who have two bedroomed houses enjoy an average yield of 5.8% which is 1.5% more than the average yield for same size of properties in London and South East; it is also higher than the average national yield of 4.9%.

Because of the excellent yield coupled with the Stockton's average house price of only £160,700, it is no wonder there is a rapid influx of new landlords into the area.

The influx of BTL investors are providing more rental homes which is encouraging new tenants from outside the area, with a year on year increase in rental demand of 6%.

Investors and prospective tenants mostly prefer three bedroomed terraced houses.

Elizabeth Williams, branch valuer of an estate agency business in Stockton-on-Tees, said: “We have seen a significant uptick in buy-to-let investors looking to purchase in Stockton-on-Tees, so much so that we deal with enquiries of this nature on at least a daily basis. Previously, these investors bought properties and flipped them for a profit, but now there is a 3% levy on stamp duty land tax on second homes and yields are stronger here, so letting these properties is a much more attractive prospect.