Landlords across England and Wales continue to benefit from strong rental yields, with most regions posting annual increases and two recording marginal dips, Fleet Mortgages’ latest data reveals.
The lender’s buy-to-let (BTL) rental barometer for Q3 found that the North East remained the top-yielding region at 9%, followed closely by the North West at 8.5%.
Yorkshire & Humberside and Wales both delivered a strong performance with yields climbing to 8.2%, while the South West (7%) and East Anglia (6.6%) posted some of the largest annual improvements.
Fleet said these regions continue to hold an attraction for landlords due to the combination of yield strength, comparatively lower property prices, and strong levels of tenant demand, particularly when supply remains constrained.
At the national level, average yields across England and Wales rose by 0.3% year-on-year to reach 7.5%, which Fleet said reflected a period of stability underlining the long-term resilience of the sector.
While two of the regions in which Fleet lends did record minor annual dips – the North East (-0.7%) and West Midlands (-0.1%) – these were modest in scale and offset by strong uplifts elsewhere.
The biggest yearly gain came from Wales, which saw yields rise by a full percentage point. Other notable increases included the South West (+0.9%), East Anglia (+0.7%), and Yorkshire & Humberside (+0.5%).
Fleet Mortgages chief commercial officer Steve Cox says: “Our latest Rental Barometer reinforces just how resilient and adaptable the private rental sector, and specifically landlord activity within it, has become.”
“Yields across England and Wales edged up for the second quarter in a row, driven by sustained tenant demand and a market that, while challenging, continues to offer opportunities for well-structured and well-capitalised landlords.”
“What we are witnessing is a marked shift towards professionalism. Over four-fifths of our applications are now from limited companies, and the growth in landlords with 15 or more properties is particularly striking.”
“Rather than exiting the sector, many landlords are scaling up, refinancing portfolios, and structuring their businesses in ways that help them absorb regulatory and cost pressures more effectively, while still pursuing property purchases.”
“Affordability remains a hurdle, especially for those entering the market for the first time, but with tenant demand consistently outstripping supply, rental growth continues to be a strong driver of yields.”
“This dynamic, combined with more competitive mortgage pricing following the Bank of England’s recent rate cut, gives advisers plenty of reasons to talk positively about the sector’s long-term outlook with their landlord borrower clients.”
