Its research, based on 50,000 properties across England, Scotland and Wales, found that the average yield for a one bedroom property was 6.8% during the first quarter of 2013.

This compares to 6.4% for a two-bed property, 6.2% for three beds and 5.6% for properties with four or more bedrooms.

Countrywide found that the average rent paid for each property type during the first three months of the year was up on the same period in 2012.

One bedroom flats now attract an average rent of £673 compared to £758 for two bedroom properties, both have grown 3.3% in the last year.

All property types have also seen arrears fall in the last year.

Nick Dunning, commercial director at Countrywide, said: “As our data shows one and two bedroom properties are providing greater yields than larger properties for landlords, 6.8% average yields for one bedroom properties, means there are some really good opportunities for investors with relatively low budgets.

“For example, a one bedroom flat in Nottingham recently sold for £51,000 and is providing a rental yield of 6.9%.

“With rents rising, arrears falling and some significantly improved buy to let mortgage products compared to those available in the last two years, the findings are very encouraging for investors who are looking to start or expand their property portfolio this year.”