However, it is landlords in the East of England who are generating the highest average yield.
The research carried out by specialists BDRC Continental has shown that landlords with rental property portfolios in the East of England achieved an average yield of 7.5%.
Landlords in Wales maintained their second place position with an average yield of 7.3%, followed by the North East at 7.2% and London (central) with 7.1%.
Professional landlords with 20 or more properties continued to generate a higher yield across their portfolios, reporting an average of 7.7%. Landlords with just one rental property achieved an average yield of 5.2%, and those with between two and four properties, 6.6%.
John Heron, managing director of Paragon Mortgages, said: “The average yield landlords have generated in Q3 is very good, and remains around the level we have seen for the past 12 months.
“It is important to remember that whilst the average yield gives a good indication of how well a rental portfolio is performing, it is just one factor that landlords need to review. Landlords will also be carefully considering the potential for house price appreciation and the outlook for tenant demand and rent levels.
“The regional split is fairly mixed again this quarter with the East of England taking the top spot, which could be reflective of the current level of tenant demand in this area of the country combined with softer house prices in the region. We know from other research that we have carried out, that almost all landlords (91%) think that tenant demand is either stable or growing, and this looks set to continue as we head into the last quarter.”