Regional variations in yields, arrears and void periods are increasingly influencing landlord investment decisions, according to research from Pegasus Insight and Foundation.
The Q2 2026 Landlord Trends report puts the average landlord portfolio value at £1.8m, with gross annual rental income of £12,007 per property and an average yield of 6.4%.
Some 86% of landlords reported making a profit from their lettings activity, while 5% were operating at a loss.
However, 22% sold a property during the previous 12 months compared with only 6% who purchased one, indicating continued portfolio restructuring.
LONDON DELIVERS INCOME BUT LOWER YIELDS
Central London landlords reported the highest average portfolio value at £3.7m and the greatest rental income per property at £17,989.
However, the capital’s average yield of 5.3% was below the national figure.
The East of England and East Midlands delivered the UK’s highest yields at 7.3%, followed by Yorkshire and the Humber at 6.8% and the North East at 6.6%.
The East Midlands also recorded the highest proportion of profitable landlords at 92%, ahead of the West Midlands at 90%.
HIGHER YIELDS COME WITH GREATER RISKS
In the North East, 55% of landlords experienced a void period and 42% reported rental arrears.
Arrears affected 43% of landlords in Yorkshire and the Humber, 39% in the North West and 37% in the East Midlands, compared with a UK average of 26%.
Foundation says the figures demonstrate why brokers and landlords must consider tenant demand, void risk and payment performance alongside headline yields.
LANDLORDS REALLOCATE CAPITAL
The North West recorded the highest proportion of landlords selling property during the year at 30%, followed by Yorkshire and the Humber at 29% and the East Midlands at 25%.
Purchasing was more subdued, although 18% of North East landlords acquired property.
‘NO TYPICAL BUY-TO-LET
Grant Hendry (mai picture, inset), Director of Sales at Foundation, says: “The latest research reinforces the fact there is no such thing as a typical buy to let market. While headline figures show a sector that remains profitable and resilient, the regional data reveals very different opportunities and challenges depending on where landlords are investing.
“London continues to offer exceptional portfolio values and rental income, while many regional markets are producing stronger yields. At the same time, some of the highest-yielding areas are also experiencing greater levels of arrears and void periods, highlighting the need for a balanced approach to portfolio management.
“For brokers, understanding these local market dynamics has never been more important. The most effective advice goes beyond simply comparing rates and products. It involves helping landlords assess their long-term objectives, refinancing requirements, acquisition plans and portfolio strategy.
“By understanding the regional picture, brokers can better support clients in identifying the most appropriate opportunities and solutions, ultimately making mortgages happen.”
