Landlords throughout England and Wales proceed to learn from robust rental yields regardless of modest annual dips in choose areas, based on Fleet Mortgages’ newest Buy-to-Let Rental Barometer for Q2 2025.
The report, which compares quarterly information 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 yr.
Wales topped the yield desk for the primary time, hitting 9.0%, adopted intently 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 counsel these dips are stabilising. Meanwhile, Wales led in annual and quarterly progress, up 0.7% and 1.3% respectively, with different uplifts seen within 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 reasonably priced common lease stays in Yorkshire & Humberside (£861pcm), whereas Greater London stays the priciest at £2,328pcm.
Fleet’s lending information discovered that:
54% of functions got here from portfolio landlords (4+ properties)
39% of circumstances had been for brand spanking new purchases
81% of functions had been by way of restricted corporations
First-time landlord functions remained regular at 14%
Fleet’s common two- and five-year fastened 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 significantly 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 vital components in constructing sustainable portfolios.
“While some Southern areas have decrease yield percentages, that is regular given property costs. They proceed to ship when it comes to capital appreciation, and month-to-month rental values stay excessive. The progress in rents throughout most areas – significantly the substantial 21.8% bounce within the North East – illustrates tenant demand remains to be outpacing provide, supporting continued funding.
“It’s clear landlords are nonetheless very a lot out there – over half of our enterprise continues to return 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.”
A current report from Excellion discovered that HMOs promote for as a lot as 50% above the common home worth, and supply rental yields of as much as 12.5%.
