Yields fell in most regions last month, according to Your Move, which said that the typical yield across all of England and Wales was 4.5% in March.

This was down from 4.6% in February and from 5% in March last year.

The letting agent added that Wales was the only area not to see yields fall in the last 12 months, with the average return for landlords there sticking at 4.8%, exactly the same as both last month and a year ago.

In London the average yield was 3.2% this month, down on the 3.6% recorded a year ago.

In the North East the typical return was 5.2% while in the North West it was 5% – although both were down on the same point in 2016. These were the only two regions to see yields above the 5% mark last month.

Rental falls

London and the South East were among those regions to see rents fall in the past 12 months, as people continued to look outside the capital for rental properties, said Your Move.

But the capital remains the the most expensive place to rent a property, at an average £1,203 a month, down 6.4% from January and 7.5% from a year ago.

Average rents rose in the East of England, where the average property was let for £883 in March 2017, up 7.4% on March 2016.

The average rent across England and Wales was £800 in March.

Valerie Bannister, lettings director of Your Move, said: “In previous months we have seen rents in the South East rise as people looked to move beyond the capital, but it is the East of England which appears to be seeing the benefit as rents here have risen 7.4% in the last year.

“Though rents have dropped in the South East as demand continues to outstrip supply for affordable housing, the area remains good value for renters.”