Rental yields across England and Wales remained resilient in Q2 2025 with landlords continuing to invest despite regional fluctuations, according to the latest Rental Barometer from Fleet Mortgages.
The specialist buy-to-let lender reported that average yields across England and Wales rose marginally to 7.5%, up from 7.4% in Q1, reflecting a period of sustained yield stability underpinned by strong tenant demand and landlord confidence.
Wales topped the table with average yields of 9%, followed by the North West (8.8%) and North East (8.7%).
Fleet says high yields in these regions are driven by a combination of comparatively low property prices and persistent rental demand.
RELATIVE STABILITY
While some areas experienced year-on-year declines – most notably the North East (-1.4%), West Midlands (-0.8%), and East Anglia (-0.6%) – quarterly dips were more modest, suggesting relative stability in the market.
Rental values also rose by 2.9% on average quarter-on-quarter. The North East led the way with a 21.8% increase, followed by Wales (7.8%) and Greater London (6.5%).
The most affordable region remained Yorkshire & Humberside, with average rents of £861 per calendar month (pcm), while Greater London continued to command the highest rents at £2,328 pcm.
STRONG LANDLORD ACTIVITY
Landlord activity remained strong, with 54% of Fleet’s Q2 lending going to landlords with four or more properties, and 39% of business attributed to purchases – unchanged from Q1. First-time landlord applications remained steady at 14%.
Limited company buy-to-let continues to dominate, accounting for 81% of applications, as landlords seek tax efficiencies and long-term flexibility.
Steve Cox, Chief Commercial Officer at Fleet Mortgages, says: “Yields remain robust, particularly in Wales and the North, and rental growth shows that demand continues to outstrip supply.
“The continued strength of limited company lending, alongside steady purchase demand, underlines the sector’s resilience and long-term appeal.”
