Scottish rental yields have risen in the first quarter, but in other parts of the country the returns are down, research has found.

The figures from Landlord Mortgages showed Scotland, bucked the trend with a yield increase from 6.27% in the last three months of 2005 to 6.58% in the first quarter of 2006.

Yet quarterly rental yield show that overall rental yields in England fell from 6.15% in the last quarter of 2005 to 5.91% in the first quarter of this year.

Lee Grandin, Managing Director, Landlord Mortgages comments: The end of 2005 saw rental yields across England and the Capital rise, showing not just a three and a half year high for London, but also increased stability in the market place. However, this quarter showed rental yields fall in England and London, with England recording its second lowest score since the index began in 2002.

It will be interesting to see if this trend continues as we feel that the introduction of Houses in Multiple Occupation licensing is likely to affect the capital the most and we may see a gradual fall in yields over the coming months.