Wales has maintained its position as the highest-yielding region for landlords in the UK, according to Paragon Bank’s latest Buy-to-Let Yield Report.
The data for the third quarter of 2025 shows that landlords with property in Wales achieved an average gross yield of 8.84% at the end of September, up from 8.59% in the previous quarter.
Paragon’s analysis revealed that yields in Wales have strengthened steadily since early 2023, when they stood at 7.13%.
The North East also performed well, finishing Q3 with yields of 8.16%, while the North West and South West both recorded 7.81%.
Yorkshire and the Humber closely followed at 7.80%. At the other end of the scale, landlords in Greater London achieved the lowest yield at 5.65%, with the South East slightly higher at 6.49%.
Yields in Wales saw the highest annual increase, rising by 0.86 basis points compared with the same period last year. The East Midlands (+77bp), West Midlands (+42bp) and East Anglia (+35bp) also recorded notable growth.
Across the UK, average gross rental yields dipped slightly from a 14-year high of 7.12% in the second quarter to 6.97% at the end of Q3.
Student property continued to outperform non-student lets, with landlords in student postcodes achieving an average yield of 7.31% compared with 6.65% elsewhere.
Houses in multiple occupation (HMO) recorded yields of 8.48%, with terraced and flat properties generating 6.27% and 6.28% respectively.
Louisa Sedgwick, managing director of mortgages at Paragon Bank, said: “With 30 years of buy-to-let lending data, we are in a unique position to offer insight into landlord trends.
“Typically, regions with lower average property values and sustained high levels of tenant demand are generating higher yields.
“We see this clearly across northern England and Wales and that is reflected in landlord demand for new properties in those locations.”
She added: “Student property has always been popular with landlords and that is reflected in both higher yields generated in known student postcodes and HMO properties that typically house students from their second year onwards.
“We expect this to continue to be the case despite uncertainty over university funding, particularly driven by domestic students.”
