Rental yields in the North of England grew 2.6 per cent in the final quarter of last year, shows data from Fleet Mortgages’ newly launched buy-to-let index.

Landlords with properties in the North enjoyed yields of 9.1 per cent in Q4 2019, up from 6.5 per cent in Q4 2018.

Meanwhile, in the North West, yields dropped from 7.5 per cent to 7.4 per cent over the same time period – the only region to see any sort of fall.

In Greater London yields crept up 0.3 per cent, from 4.8 per cent to 5.1 per cent, while in the South West the metric was static – reading 5.5 per cent in both quarters.

Overall yield growth for England and Wales as a whole grew 0.7 per cent, from 5.4 per cent to 6.1 per cent, Fleet adds.

Fleet Mortgages distribution director Steve Cox says: “Clearly, the market has shifted over the past 18-24 months as landlords get to grips with the increased costs that come with private rental sector activity, in particular the phased-in changes to mortgage interest tax relief for individual landlords.

“Landlords now tend to look differently at their properties, with many converting single-tenancy properties into multi-tenant ones in order to secure better yields. These higher yields are needed in order meet those growing tax liabilities, but to also offset the increased cost of acquiring tenants and regulation. Examples of these changes include more properties being converted into self-contained flats rather than keeping the property as a larger family home.”