Landlords across England and Wales continue to benefit from strong rental yields, with some dips observed year-on-year across regions both in the North and South, according to Fleet Mortgages’ latest Buy-to-Let Rental Barometer for Q2.
The Fleet Mortgages Quarterly Rental Barometer provides a regional snapshot of rental yield trends in England and Wales, with this iteration comparing Q2 2024 to Q2 2025.
The data highlighted continued strength in rental yields across most regions in line with yields over the past 12 months, with Wales jumping to the top spot with average quarterly yields of 9%, followed by the North West with 8.8% and the North East with 8.7%.
Fleet said these regions continue to hold an attraction for landlords due to the strength of yield achievable, plus a combination of lower property prices and sustained demand, especially when compared to supply.
Across England and Wales the average rental yield dipped by just 0.1% over the year, however quarter-on-quarter it was up by the same amount from 7.4% in Q1 2025 to 7.5% in Q2.
Fleet said this reflects a continued period of yield stability across all regions in which it lends, underpinned by strong and sustained appetite from existing landlords looking to maintain and expand their portfolios, and benefit from both current rental income levels and the long-term potential for capital appreciation.
Four regions did show a slight dip on the yearly yield comparison, with the biggest dips being in the North East (-1.4%), the West Midlands (-0.8%) and East Anglia (-0.6%).
However, quarter-on-quarter figures reveal these three regions had seen only a 0.5% fall over the three months, with the expectation these current levels could be sustained for a longer period going forward.
The biggest yearly increase in yields came from Wales, which saw a 0.7% increase, while its quarterly increase was a significant 1.3%.
Other regions which also saw a quarterly increase include the East Midlands, the North West and the South West, which all saw increases of 0.4%.
Over the course of Q2, the North East saw a significant 21.8% increase in monthly rental values, followed by 7.8% in Wales and 6.5% in Greater London.
However, four regions showed a quarterly dip – Yorkshire & Humberside (-1%), the South West (-1.6%), the South East (-3.5%) and the West Midlands (-5.8%). Overall, across all regions, rental values were up 2.9% quarter-on-quarter.
Yorkshire & Humberside has the most affordable monthly rent figure of £861 per calendar month (pcm), while the most expensive is Greater London at £2,328 pcm.
The Rental Barometer also looks at a range of other related data.
Fleet’s lending data showed that landlords remain active and committed to expanding portfolios, with 39% looking to purchase – the same figure as Q1 – and 54% owning four or more properties.
The attraction of buy-to-let for new landlords also remained strong, with first-time landlord applications holding steady at 14% over the quarter.
Data also showed the ongoing dominance of limited company buy-to-let – 81% of all applications received by Fleet were from limited companies, with just 19% from those looking to borrow in their individual name.
On pricing, Fleet’s average 2- and 5-year fixed rates fell to 4.35% and 5.13% respectively (down from 4.63% and 5.15% in the last quarter), highlighting it said its continued competitive pricing; it continued to outperform peer market averages rates (4.93% and 5.27%).
Steve Cox, chief commercial officer at Fleet Mortgages, said: “Our latest Rental Barometer shows yields across England and Wales continue to hold firm, underlining the enduring strength of the private rental sector and landlords’ commitment to delivering the supply required by sustained tenant demand.
“While we’ve seen some modest annual dips in specific regions, overall yields remain robust, with the quarterly increase to 7.5% reflecting a strong and stable foundation for landlords seeking long-term income and capital growth.
“It’s particularly encouraging to see Wales now leading the table with a 9% average yield, and the North West and North East remaining highly competitive. These areas continue to offer landlords a compelling mix of yield, affordability and tenant demand, all of which remain critical factors in building sustainable portfolios.”
He continued: “It’s clear landlords are still very much in the market – over half of our business continues to come from those with four or more properties, and purchase demand has held steady despite wider economic pressures.
“It’s also pleasing to see first-time landlord activity staying consistent at 14% which suggests new entrants are still seeing long-term value in buy-to-let.
“We’re also proud to be continually competitive on pricing, with our fixed-rate products outperforming peer averages.
“Combined with strong rental yield and continued appetite, particularly from limited company landlords – now 81% of all applications – it shows there are still plenty of reasons to be optimistic about the future of the buy-to-let sector.”
