The North East and North West of England had the best annual rental yields of 5.2% and 5.0% in May, Your Move’s buy-to-let index for England and Wales found.
The lowest yielding area was London (3.2%), followed by the South West (3.4%) and the South East (3.4%).
Richard Waind, director of Your Move, said: “The squeezing of yields in recent times may also be showing signs of ending as landlord returns remain relatively stable with the North East and North West, in particular, performing well.”
Some areas are seeing yields improve compared to the month before, such as the South West (0.49%), Yorkshire and the Humber (0.40%) and the North West (0.38%).
Meanwhile they worsened in Wales (-0.49%) and the East of England (-0.46%).
The cost of renting rose month-on-month to June in some regions, as prices rose by 0.3% in the North West and West Midlands.
Waind added: “Compared to May, rental prices have held firm or continued to increase – suggesting that recent political turmoil has had little immediate impact on renters.”