Landlords have seen average rental yields increase year-on-year across eight out of 10 regions in England and Wales.
This is according to the latest Q3 Rental Barometer from Fleet Mortgages.
It shows the average annual rental yield across England and Wales increased to 7.9%, up from 7.5% in Q3 2025.
Only the North West and Wales recorded year-on-year reductions in average yields, while Yorkshire & Humberside moved to the top of the regional yield table following a strong 12 months.
Average yields in Yorkshire & Humberside increased from 8.2% in Q3 2025 to 9.3% this year, a rise of 1.1%, while the East Midlands recorded the second-largest annual increase, rising by 0.9% to 8.4%.
The West Midlands and South East both recorded annual increases of 0.7%, reaching 8.2% and 7.2% respectively, while Greater London saw its average yield increase from 5.9% to 6.4%.
The North East remains one of the strongest regions for rental returns at 9.2%, while the North West, despite its annual 0.2% reduction also continues to deliver an average yield above 8%.
Fleet said the regional figures demonstrate the different investment dynamics landlords continue to encounter across England and Wales, with higher yields not necessarily translating directly into higher levels of purchase activity in some regions.
Yorkshire & Humberside combined the highest average yield at 9.3% with purchase business accounting for 43% of Fleet applications in the region during Q3.
However, Wales recorded the highest proportion of purchase business of any region at 46%, despite average yields falling from 8.1% in Q2 to 7.5% in Q3 and average monthly rents reducing from £1,214 to £1,079.
The South West also recorded a significant increase in purchase activity, rising from 23% of applications in Q2 to 34% in Q3, alongside an increase in average yields from 6.6% to 7.1%.
At the other end of the yield table, Greater London continued to deliver the lowest average yield at 6.4%, but average monthly rents increased from £2,364 in Q2 to £2,597 in Q3, the highest of any region covered by Fleet’s Barometer.
The latest figures also suggest experienced landlords continue to identify opportunities despite the changing financial and regulatory environment.
The average Fleet landlord owned 18 investment properties during Q3, up from 16 in the previous quarter and 12 a year ago, while 30% of applications came from landlords with portfolios of 15 or more properties.
Two-thirds of all applications were from landlords owning four or more properties, while first-time landlord applications also increased slightly from 9% in Q2 to 10% in Q3.
Steve Cox, Chief Commercial Officer at Fleet Mortgages, comments: “Landlords have had an enormous amount to consider during 2026, from changing mortgage pricing and funding costs through to the Renters Rights Act and the wider economic environment, but rental yield remains one of the most important numbers when assessing any potential investment.
“Our latest Barometer shows average yields are higher than they were a year ago in eight of the 10 regions in England and Wales we cover, with the overall average increasing from 7.5% to 7.9%.”
This article is taken from Landlord Today