There is a 2.5% difference in net yields for landlords in England and Wales between the best performing and worst performing regions, a new study shows.

On a regional basis the Midlands has the top average net yields at 6.6%, followed by Yorkshire at 5.7%, the North East and Wales both at 5.6% and the North West at 5.5%, according to the data from online estate agency Yieldit.

In Yorkshire, while the overall figure is 5.7% areas such as Bradford and Scarborough are performing particularly well for landlords, producing net yields in excess of 6%.

The South East and East of England lagged behind with averages of 4.4% and 4.1% respectively. London is pulling down the figure in the South East with net yields of just 3.7%.

But some areas in the South East are doing better, for example Folkestone in Kent with net yields of 5.8%. The report suggests that it is seen as a coastal commuter hotspot, being under an hour from London.

‘It’s interesting to look at which areas are performing the best in terms of net yields and it is no surprise to see the Midlands leading the way with attractive asking prices and rising tenant demand,’ said Head of Sales at Yieldit, Ryan Hughes.

‘It’s clear that high property prices in the south and London have had a negative impact on net yields and as such investors are looking further afield. As renters continue to abandon the capital in favour of our regional cities we are seeing landlords follow, a trend that shows no sign of abating any time soon,’ he added.