Inventory Base found that rental yields in England have increased by up to 0.7% since the start of the year.
The average yield across England stands at 5.2%, up by 0.05% since January 2024.
The average house price rose from £294,799 in January to £308,782 in September, while average rent values increased from £1,263 to £1,336.
London reports the highest yields at 4.9%, followed by the North East (4.8%), North West (4.6%), Yorkshire & Humber (4.4%), South West (4.3%), West Midlands (4.2%), South East (4.2%), East of England (4.1%), and East Midlands (4%).
London also recorded a rise of 0.19% in yields, with house prices increasing from £511,743 to £525,586 and average rents climbing from £2,007 to £2,145.
The East of England followed with a yield growth of 0.11%, while the South West saw an increase of 0.08%, and the South East grew by 0.03%.
Other regions have experienced yield declines, with the North East down by 0.19%.
Brent in London saw the highest yield growth at 0.7%, bringing the average yield to 4.6%.
The City of Westminster increased by 0.55%, Kensington & Chelsea by 0.47%, and Islington by 0.44%.
Outside London, Melton rose by 0.42%, Dartford by 0.39%, the Isle of Wight by 0.37%, and Stockport by 0.34%.
Portsmouth has the highest average yield at 6.2%, followed by Burnley (6.1%), Manchester (6%), the City of Bristol (5.9%), and Newcastle-upon-Tyne (5.8%).
Siân Hemming-Metcalfe, operations director at Inventory Base, said: “Despite many naysayers, England’s rental market is thriving.
“Modest house price growth combined with a strong rise in rent values means that landlords across much of the nation have benefited from growing yields since the start of the year.
“However, landlords currently face significant pressures, including high mortgage costs and government intervention such as the abolishment of Section 21.
Hemming-Metcalfe added: “As a result, profit margins in the modern rental sector are thin. Landlords who want to protect and even bolster their profit margins have the opportunity to integrate technology into their daily processes.
“For example, digitising the inventory process not only reduces the time and cost of completing inventories, but also creates a more efficient and error-free system.
“This ensures they don’t incur costs of any damage caused by their tenants.”
