Rental yields across England and Wales continued to rise on both an annual and quarterly basis, according to Fleet Mortgages’ latest Buy-to-Let Rental Barometer for Q4 2025.

At a national level, average yields rose by 30bps annually in Q4 2025. They rose by 20bps quarterly to reach 7.7%.

The North East remained the top-yielding region, moving up by 30bps annually and 60bps quarterly to 9.6%.

Four regions – Yorkshire and Humberside, the North West, the West Midlands and East Midlands – all posted average rental yields at 8% and above.

Fleet said there had been a narrowing of the North/South average yield divide, with the South West, East Anglia, South East and Greater London regions all posting a yearly increase in average yield.

The North West, Wales and Yorkshire and Humberside posted slight falls in yearly average yield, but Fleet said the wider rental yield picture showed consistent strength, with landlords benefiting from good tenant demand coupled with rising rental values.

The worst-performing region for yield continued to be Greater London, at 6.3% in Q4 2025, an increase from 5.8% on the same period of 2024.

Limited company borrowing accounted for 76% of Fleet’s Q4 applications, slightly down from the high of 81% in Q3.

Landlords with more than six buy-to-let properties made up 55% of all those applying for mortgages with Fleet during the quarter. The average number of investment properties held by Fleet landlord borrowers was up to 14 from 12 last quarter.

First-time landlord application activity dipped slightly to 11% from 12% last quarter, but the lender suggested this was still a strong number.

Purchase business continued to make up more than a third of Fleet’s mortgage business, at 37%, with remortgaging and product transfers making up the rest of the applications received.

Fleet Mortgages chief commercial officer Steve Cox said: “As this latest Rental Barometer confirms, average rental yields have continued to move in the right direction, both year-on-year and quarter-on-quarter, which will be welcome news for landlords.

“While a small number of regions saw slight dips, the wider picture remains solid. We are seeing portfolios grow, with the average number of properties held by our landlord clients increasing again this quarter, showing ongoing confidence in buy-to-let investment.”