Regional differences are playing an increasingly important role in shaping landlord strategy across the UK, research reveals.
The latest Pegasus Insight Landlord Trends report, produced in conjunction with Foundation, shows the buy-to-let (BTL) sector remains resilient overall in Q2 2026.
During the quarter, landlords reporting an estimated portfolio value of £1.8 million, gross rental income of £12,007 per property and average rental yields of 6.4%.
Research reveals 86% of landlords were making a profit from their lettings activity, while only 5% reported operating at a loss.
Over the past 12 months, 22% of landlords sold a property compared to just 6% who purchased one, which Foundation says suggests many are reviewing and reshaping their portfolios in response to changing market conditions.
The research highlights how performance varies significantly across different parts of the country.
It highlights that London remains a market characterised by high asset values and strong rental income.
Central London landlords reported the highest average portfolio value at £3.7m and the highest rental income per property at £17,989, but yields were lower than the national average at 5.3%.
Foundation says these figures demonstrate how landlords operating in the capital often need to balance lower yields against stronger long-term capital values and higher rental incomes.
Outside London, several regions continue to deliver stronger yields.
The East of England and East Midlands both recorded average rental yields of 7.3%, the highest in the UK, followed by Yorkshire and The Humber at 6.8%, the North East at 6.6%, and both the South West and West Midlands at 6.5%.
Profitability remains robust across much of the country. The East Midlands recorded the highest proportion of landlords making a profit at 92%, followed by the West Midlands at 90%. The East of England and South West both stood at 89%, while the South East reported profitability levels of 87%.
The data also reveals that stronger yields can be accompanied by greater operational challenges.
The North East recorded one of the UK’s highest average rental yields at 6.6%, but also reported the highest proportion of landlords experiencing void periods at 55%, alongside rental arrears affecting 42% of landlords.
Similarly, rental arrears were reported by 43% of landlords in Yorkshire and The Humber, 39% in the North West and 37% in the East Midlands, all significantly above the UK average of 26%.
Meanwhile, the North West recorded the highest proportion of landlords selling properties during the past year at 30%, followed by Yorkshire and The Humber at 29% and the East Midlands at 25%.
Purchasing activity was generally more subdued, although the North East stood out with 18% of landlords reporting a property purchase during the last 12 months.
Foundation director of sales Grant Hendry says: “The latest research reinforces the fact there is no such thing as a typical buy to let market. While headline figures show a sector that remains profitable and resilient, the regional data reveals very different opportunities and challenges depending on where landlords are investing.”
“London continues to offer exceptional portfolio values and rental income, while many regional markets are producing stronger yields. At the same time, some of the highest-yielding areas are also experiencing greater levels of arrears and void periods, highlighting the need for a balanced approach to portfolio management.”
