Landlords across England and Wales are continuing to enjoy robust rental yields, with new data revealing only minor fluctuations in returns across the regions, according to Fleet Mortgages’ Q2 2025 Buy-to-Let Rental Barometer.
Despite slight year-on-year dips in certain areas, overall yields remain resilient. Wales now leads the country with the highest average quarterly yield of 9%, overtaking the North West (8.8%) and the North East (8.7%). The latest figures suggest these regions continue to appeal to landlords due to a combination of strong returns, more affordable property prices, and consistent tenant demand.
Nationally, average rental yields edged up quarter-on-quarter from 7.4% in Q1 to 7.5% in Q2. Year-on-year, the change was minimal, with a 0.1% dip—highlighting a period of general stability in the buy-to-let sector.
Fleet Mortgages said the data reflects strong demand among existing landlords seeking to maintain or expand their portfolios. The continued interest is driven not only by current rental income levels but also by expectations of long-term capital growth.
While yields in most regions remained stable or grew, four areas experienced annual declines. The North East saw the sharpest drop at -1.4%, followed by the West Midlands (-0.8%) and East Anglia (-0.6%). However, these regions also showed only modest declines of 0.5% quarter-on-quarter, suggesting the potential for longer-term recovery or stability.
Wales recorded the largest year-on-year yield increase, up 0.7%, with a quarterly rise of 1.3%. Other regions with quarterly growth included the East Midlands, North West, and South West, all posting a 0.4% gain.
Rental values also saw notable increases in several parts of the country. The North East led with a staggering 21.8% rise in monthly rents over the quarter. Wales followed with 7.8%, while Greater London saw rents climb by 6.5%. Despite this, four regions reported a dip in rental values: Yorkshire & Humberside (-1%), South West (-1.6%), South East (-3.5%), and West Midlands (-5.8%). Overall, average rents across all regions increased by 2.9% in Q2.
At the regional level, Yorkshire & Humberside remains the most affordable rental area, with average monthly rents at £861. In contrast, Greater London remains the most expensive, with average rents at £2,328 per calendar month.
Commenting on the findings, Steve Cox, Chief Commercial Officer at Fleet Mortgages, said: “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.”
Cox also noted that although yields in the South are generally lower due to higher property values, they continue to perform well in terms of capital appreciation. “The growth in rents across most regions – particularly the substantial 21.8% jump in the North East – illustrates that tenant demand is still outpacing supply, supporting continued investment,” he added.
Fleet reported that over half of its lending continues to support landlords with four or more properties. Meanwhile, first-time landlords remain active, accounting for 14% of business in Q2—an indication that new investors still see value in the buy-to-let market despite broader economic uncertainty.