Rental yields kept rising across England and Wales, with most regions seeing annual increases, according to Fleet Mortgages’ Q3 2025 Buy-to-Let Rental Barometer.
The research compared Q3 2024 with Q3 2025 and found yields stayed strong in most areas.
The North East had the highest average yield at 9%, though this was down 0.7% from last year.
The North West followed at 8.5%, up 0.5%.
Yorkshire and Humberside and Wales both reached 8.2%, with Wales showing the biggest annual gain of 1 percentage point.
The South West and East Anglia saw some of the largest improvements, with yields at 7% and 6.6% respectively.
Fleet Mortgages said these regions remained popular with landlords due to strong yields, lower property prices and high tenant demand, especially where supply was limited.
Across England and Wales, average yields grew by 0.3% year-on-year, reaching 7.5%.
Only the North East and West Midlands saw small drops, with yields down 0.7% and 0.1% respectively.
The East Midlands and Greater London had no change.
Average monthly rents across Fleet’s lending areas rose by 3.2% in Q3.
Greater London had the highest rents at £2,165 per month, followed by the South East at £1,662 and the West Midlands at £1,563.
Annual rent growth was 10.4%, led by double-digit rises in the West Midlands, North East, and Yorkshire and Humberside.
Quarterly rent changes varied, with strong rises in the West Midlands and Yorkshire and Humberside but falls in East Anglia, Wales and Greater London.
Fleet Mortgages said this was due to local supply and demand differences.
Most landlords were using limited company structures, with 81% of Fleet’s Q3 applications from corporate borrowers.
More portfolio landlords applied, with 61% of applications from those with four or more properties and 23% from those with 15 or more, up from 16% in Q2.
First-time landlord activity stayed at 12%.
Steve Cox, chief commercial officer at Fleet Mortgages, said: “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.”
Cox added: “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.”
He said: “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.
“The message from our data is clear: buy-to-let remains a viable and attractive proposition for professional landlords who are prepared to adapt, and for advisers who want to support their clients in building sustainable portfolios.”
