Rental yields grew by 0.2% on a quarterly basis at the start of this year, shows data from Paragon Bank.

In Q1 2021, Paragon recorded rental yields across England and Wales at 6%, which compares to 5.8% in Q4 2020.

In Q1 2020 the number stood at 5.3%.

The nearly 900 landlords who took part in the lender’s survey also provided answers that shows the highest rental yields are located in the South West and North East, clocking 6.7% and 6.6%, respectively.

Meanwhile, central London provides the poorest yields, at 5.4%.

And, the survey adds, landlords with one property to rent fare the worst, averaging yields of 5.7% compared to those with a portfolio of 20 properties, who enjoy an average yield of 7.1%.

Paragon managing director for mortgages Richard Rowntree says: “The fact that this is a three-year high and is being reported alongside continued high levels of tenant demand suggests that the private rented sector has bounced back well from the Covid-19 pandemic and is actually stronger as a result of providing stable homes for tenants during the challenges of the past year or so.”