The UK has fallen to the bottom five European buy-to-let markets for investors as UK yields fall to 4%.
In the latest European buy-to-let table from WorldFirst, UK yields have fallen from 4.91% to 4% over the past 12 months.
Malta, Portugal, Netherlands and Slovakia are all near the top of the table with yields over 6%, however Ireland tops the list with an average rental yield of 7.08%.
Edward Hardy, economist at WorldFirst, said: “The correlation between a country’s housing sector and the health of the wider economy is clear.
“It may now be the case that the deteriorating dynamics of the UK’s rental market is sounding the alarm for a wider slowdown in residential housing and thereby broader economic wellbeing.
“Falling returns for property investors could mark the beginning of the end for one of the UK’s most successful investment avenues of the past 25 years.”