Landlords are enjoying solid rental yields according to a buy to let mortgage provider.
Fleet Mortgages’ latest Rental Barometer, assessing data from the final quarter of 2025, shows average rental yields rose to 7.7% across England and Wales.
This was up both year-on-year and quarter-on-quarter.
Fleet says this suggests tenant demand remains high, supply is still constrained and, as a result, rental values continue to rise in most regions.
The North East again delivered the highest average yield at 9.6%, supported by strong demand and relatively lower purchase prices.
Several other regions also recorded yields at, or above, 8%, including Yorkshire and Humberside, the North West, the West Midlands and the East Midlands.
Importantly, for landlords operating in the South, yields also moved higher across all southern regions tracked.
The South West, East Anglia, South East and Greater London all year-on-year increases, pointing to a more balanced rental market.
| Average Rental Yields | y/y change | ||
| Region | 2024 Q4 | 2025 Q4 | |
| North East | 9.3% | 9.6% | 0.3% |
| Yorkshire and Humberside | 8.6% | 8.3% | -0.3% |
| North West | 8.3% | 8.2% | -0.1% |
| West Midlands | 6.6% | 8.1% | 1.5% |
| East Midlands | 7.7% | 8.0% | 0.3% |
| Wales | 8.2% | 7.6% | -0.6% |
| South West | 6.9% | 7.4% | 0.5% |
| East Anglia | 6.3% | 7.2% | 0.9% |
| South East | 6.4% | 6.6% | 0.2% |
| Greater London | 5.8% | 6.3% | 0.5% |
| England & Wales (Total) | 7.4% | 7.7% | 0.3% |
Average fixed mortgage rates eased again in Q4, with two-year and five-year pricing both moving lower.
This, Fleet says, would help improve affordability and support ongoing investment and refinancing activity.
Landlord involvement in the sector continues to show a shift towards larger and more established portfolios dominating.
More than half of applications came from landlords with six or more properties, and the average Fleet borrower now holds 14 rental homes.
Limited company borrowing remains the dominant structure, reflecting a focus on longer-term portfolio planning.
Although first-time landlord activity dipped slightly, new entrants still accounted for more than 10% of applications
This article is taken from Landlord Today