Rental yields across England and Wales rose across all regions of England & Wales on an annual basis, according to Fleet Mortgages.
The lender’s latest buy-to-let rental barometer for Q1 2026 shows that average yields rose by 0.7% on Q1 2025 and 0.4% quarterly to reach 8.1%
The North East remained the top-yielding region moving up by 0.6% annually and 0.2% quarterly to 9.8%. Six regions now hold an average rental yield above 8% – Yorkshire and Humberside, West Midlands, North West, Wales and the East Midlands
Fleet said the data continues to underline the divergence between regions, with higher-yielding areas in the North and Midlands continuing to outperform the South.
However, yields in southern regions such as the South West and South East also moved higher, pointing to broad-based tenant demand across the country, with only Greater London showing a slight quarterly dip in yield.
| Average Rental Yields | y/y change | ||
| Region | 2025 Q1 | 2026 Q1 | |
| North East | 9.2% | 9.8% | 0.6% |
| Yorkshire and Humberside | 8.1% | 9.0% | 0.9% |
| West Midlands | 7.7% | 8.6% | 0.9% |
| North West | 8.4% | 8.5% | 0.1% |
| Wales | 7.7% | 8.6% | 0.9% |
| East Midlands | 7.1% | 8.0% | 0.9% |
| South West | 6.7% | 7.8% | 1.1% |
| East Anglia | 6.7% | 7.2% | 0.5% |
| South East | 6.5% | 6.9% | 0.4% |
| Greater London | 6.0% | 6.1% | 0.1% |
| England & Wales (Total) | 7.4% | 8.1% | 0.7% |
Fleet said that, while Q1 showed a large degree of positivity, particularly in terms of average two- and five-year market fixed-rates falling quarter-on-quarter, market volatility at the end of the quarter would filter into higher average Q2 2026 rates across the board.
While January and February saw relatively stable conditions and easing pricing, March had been marked by increased volatility, driven by geopolitical events and rising swap rates.
This has led to product withdrawals and rate increases across the market, particularly impacting buy-to-let lending because of its sensitivity to funding costs.
The lender said Q1 had already seen a slight downward shift in the percentage of applications received for purchase transactions – down from 37% in Q4 last year to 33% in the first three months of this year.
It said it was likely that purchase business would be impacted much more heavily by current market conditions than remortgage or product transfer activity.
Other elements of the Q1 rental barometer were more positive with average loan sizes increasing to £210,000, limited company borrowing now accounting for 78% of all applications, over 63% of applications coming from those holding four or more properties and the proportion of landlords with 15 or more properties increasing to 30% during the quarter.
Fleet Mortgages chief commercial officer Steve Cox said: “This latest rental barometer shows a very positive picture for much of Q1, with rental yields rising across every region in England and Wales on an annual basis, and only one region showing any sort of quarterly dip.
“However, it is important to stress that much of this data reflects the first two months of the quarter, when conditions were far more stable and pricing was easing. The market we are operating in today looks very different and continues to be extremely volatile for obvious reasons.
“The impact of global events, particularly in the Middle East, has driven a sharp increase in swap rates, leading to product withdrawals and higher pricing across the market. This is likely to have a much greater impact on activity as we move through Q2, especially on the purchase side.”
