Across England and Wales minus London, landlords received an average return of almost £15,000.

The average monthly rent now stands at £742 making up approximately £9,000 of this return, attributing £6,000 to the capital appreciation of the property, according to an LSL report.

And while property investors in the capital are earning more than five times the total return per property in areas such as the North East, returns across the country have also experienced significant growth.

Total annual returns on an average rental property outside London leapt to 8.9% in January up from 5.7% in January 2013 This is an average return of £14,767, with rental income of £7,961 and capital gain of £6,806.

In January 2014 gross yields on a typical rental property dropped slightly to 5.2% compared to 5.3% the previous year.

David Brown, commercial director of LSL Property Services, said: “Rental yields remain historically high and such rental income is still underpinned by a demand-driven lettings market.

“Meanwhile rising prices are delivering an equity bonus for landlords considerably boosting total annual returns.”

Brown said equity growth and the greater availability of mortgages and products is allowing landlords to concentrate on expanding their portfolios.