New figures reveal that the national average rent increased by 0.1 per cent as the landlord sector shows signs of improvement.

According to LSL Property Services, yields rose in June to 5.1 per cent - the highest level for five years as wannabe property owners struggle to step on the property ladder.

David Brown of LSL said: "With yields improved to levels not seen in half a decade, landlords are now looking with renewed interest at expanding their portfolios, picking up rental property while house prices are near or approaching the bottom."

However, the figures did reveal that rental arrears have increased with a rise of £1.5 million to just over £254 million in June - although there was a slight fall in the number of tenants owning money to landlords.

A recent poll conducted by Paragon Mortgages discovered that 30 per cent of landlords believe that they will see an increase in interest among tenants over the next 12 months.

Written by Mark GarnerADNFCR-2002-ID-19286145-ADNFCR

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