Location is one of the key issues facing prospective landlords when deciding to purchase a new buy-to-let property.

Of course, the condition of the building, its price and the number of bedrooms will be major considerations, but its location will eventually determine whether prospective tenants will want to rent it and how much they are prepared to pay.

A recent Association of Residential Lettings Agent (ARLA) report suggests that rental returns in the north west and north east have been rising steadily since the end of 2011. Throughout the last few months they hit six per cent and 5.7 per cent respectively, making the north west the region with the highest rental return in the UK. James Davis, CEO of online lettings agent Upad, said: “One of the biggest issues within the UK rental market today is that rising rents in many locations have put significant pressure on tenants.

“Many tenants are needing to dedicate a growing portion of their disposable income to cover the cost of accommodation.”

With this in mind, landlords looking to expand their portfolios in 2013 might be interested to learn that it is the north of England rather than the south which is currently providing the highest yields.

Independent research commissioned by specialist buy-to-let mortgage lender Paragon revealed that the north west is the region in which landlords will enjoy the greatest yields. Typical yields of 6.6 per cent were recorded in this area in 2012, up from 5.9 per cent in 2011.