Landlords across England and Wales continue to see rental yields holding firm or improving in most regions, with tenant demand remaining strong and rental values increasing, according to Fleet Mortgages’ latest Buy-to-Let Rental Barometer for Q3 2025.
The Fleet Mortgages Quarterly Rental Barometer provides a regional snapshot of rental yield trends in England and Wales, with this iteration comparing Q3 2024 to Q3 2025. The new set of data highlights continued strength in rental yields across much of the country.
The North East remains the highest-yielding region at 9%, with the North West (8.5%), and Wales and Yorkshire & Humberside (both 8.2%) close behind.
The South West (7%) and East Anglia (6.6%) have shown some of the biggest annual improvements. Nationally, average yields across England and Wales now stand at 7.5%, up from 7.2% a year ago, showing that landlords who have held or expanded portfolios are seeing stability and growth.
While the North East and West Midlands registered very small annual dips in yield, these were outweighed by gains in other parts of the country. Wales was the standout performer with a 1% annual rise, while the South West and East Anglia both posted significant increases.
Fleet said the picture overall is of a rental market that is continuing to reward landlords despite ongoing pressures from rising costs and regulatory change.
| Average Rental Yields | y/y change | ||
| Region | 2024 Q3 | 2025 Q3 | |
| North East | 9.7% | 9.0% | -0.7% |
| North West | 8.0% | 8.5% | 0.5% |
| Wales | 7.2% | 8.2% | 1.0% |
| Yorkshire and Humberside | 7.7% | 8.2% | 0.5% |
| East Midlands | 7.5% | 7.5% | 0.0% |
| West Midlands | 7.6% | 7.5% | -0.1% |
| South West | 6.1% | 7.0% | 0.9% |
| East Anglia | 5.9% | 6.6% | 0.7% |
| South East | 6.1% | 6.5% | 0.4% |
| Greater London | 5.9% | 5.9% | 0.0% |
| England & Wales (Total) | 7.2% | 7.5% | 0.3% |
Rental values also remain on an upward trajectory. The West Midlands saw rents climb by over 21% year-on-year, with the North East close behind at just over 20%.
Yorkshire & Humberside also delivered almost 20% annual growth. Even where quarterly falls were recorded, such as in East Anglia, Wales and London, the long-term trend remains firmly upwards, demonstrating how demand continues to outstrip supply.
Fleet said this is translating into stronger income potential for landlords. With tenant demand still outpacing available property in most markets, the competition for good quality rental homes is keeping rents high and yields steady. For many landlords, this provides reassurance that investing in the sector continues to deliver both income and long-term growth opportunities.
The data also shows how landlord behaviour is evolving. Limited company borrowing now accounts for 81% of Fleet’s total applications, as more landlords look to benefit from greater tax-efficiency and a corporate structure better suited to professional portfolio management.
Larger portfolio landlords are also playing a greater role: over 61% of applications came from those with four or more properties, and those with 15 or more properties now make up almost a quarter of all Fleet’s business – a sharp rise from just 16% in the previous quarter.
At the same time, new landlords are still entering the market, with 12% of applications from first-time investors, proof the sector is still drawing in fresh investors despite affordability challenges.
Market conditions in Q3 were shaped by a fall in the Bank of England Base Rate from 4.25% to 4%, which fed through to lower mortgage pricing. Average rates across the market dropped by around 20 basis points (bps) for two-year fixes and 15bps for five-year fixes.
Fleet also reduced its own five-year pricing by 10bps to 5.04%, while keeping its two-year products at an average of 4.35%.
Purchases continued to account for over a third of Fleet’s business, showing many landlords are still growing portfolios, while remortgages and product transfers remain strong as landlords look to manage costs effectively.
A spokesperson for the lender says: “Our latest Rental Barometer shows a sector that is not only resilient but evolving in a way that strengthens its foundations. Yields are edging upwards, rents are growing across many regions, and tenant demand remains strong. For landlords, that means ongoing opportunities to generate good returns from property investment.
“What we are also seeing is landlords adapting how they operate. More are running their portfolios through limited companies, more are scaling up, and more are building for the long term. That level of professionalisation is a positive sign; it demonstrates that landlords are not leaving the market, but are instead putting themselves in a better position to deal with regulatory and financial challenges.
“There are, of course, hurdles – affordability remains a key issue, and new regulations such as the forthcoming Renters’ Rights Bill, are adding to the burden. But the fundamentals remain in landlords’ favour. Demand is not going away, supply is still constrained, and competitive mortgage pricing is beginning to return. For landlords who are prepared to adapt, buy-to-let remains a viable and rewarding investment.”
The full Fleet Mortgages’ Rental Barometer can be viewed by visiting: https://www.fleetmortgages.co.uk/broker-resources/
