Landlords throughout England and Wales proceed to profit from robust rental yields regardless of modest annual dips in choose areas, in accordance with Fleet Mortgages’ newest Buy-to-Let Rental Barometer for Q2 2025.
The report, which compares quarterly knowledge from Q2 2024 to Q2 2025, exhibits nationwide common yields holding regular at 7.5%—up 0.1% on the quarter and simply 0.1% beneath this time final 12 months.
Wales topped the yield desk for the primary time, hitting 9.0%, adopted carefully by the North West (8.8%) and North East (8.7%).
Fleet attributed the sustained yield efficiency to continued tenant demand, comparatively decrease property costs in northern and Welsh areas, and renewed urge for food from skilled landlords seeking to develop their portfolios.
Although 4 areas recorded year-on-year yield declines—most notably the North East (-1.4%) and West Midlands (-0.8%)—quarterly figures recommend these dips are stabilising. Meanwhile, Wales led in annual and quarterly progress, up 0.7% and 1.3% respectively, with different uplifts seen in the East Midlands, North West, and South West.
Average month-to-month rents additionally rose by 2.9% quarter-on-quarter, with the North East seeing the sharpest rise at 21.8%, adopted by Wales (7.8%) and Greater London (6.5%). The most inexpensive common hire stays in Yorkshire & Humberside (£861pcm), whereas Greater London stays the priciest at £2,328pcm.
Fleet’s lending knowledge discovered that:
54% of purposes got here from portfolio landlords (4+ properties)
39% of instances have been for new purchases
81% of purposes have been by way of restricted firms
First-time landlord purposes remained regular at 14%
Fleet’s common two- and five-year mounted charges additionally fell to 4.35% and 5.13% respectively, sustaining a aggressive edge over wider market averages.
Fleet chief industrial officer Steve Cox says: “It’s notably encouraging to see Wales now main the desk with a 9% common yield, and the North West and North East remaining extremely aggressive. These areas proceed to supply landlords a compelling mixture of yield, affordability and tenant demand, all of which stay important elements in constructing sustainable portfolios.
“While some Southern areas have decrease yield percentages, that is regular given property costs. They proceed to ship in phrases of capital appreciation, and month-to-month rental values stay excessive. The progress in rents throughout most areas – notably the substantial 21.8% bounce in the North East – illustrates tenant demand remains to be outpacing provide, supporting continued funding.
“It’s clear landlords are nonetheless very a lot in the market – over half of our enterprise continues to come back from these with 4 or extra properties, and buy demand has held regular regardless of wider financial pressures. It’s additionally pleasing to see first-time landlord exercise staying constant at 14% which suggests new entrants are nonetheless seeing long-term worth in buy-to-let.”
