- News
- 1 October 2025
Steve Cox
Chief Commercial Officer
Steve Cox
Chief Commercial Officer
Landlords across England and Wales continue to benefit from strong rental yields, with most regions posting annual increases and two recording marginal dips, according to buy-to-let specialist lender, 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 remained the top-yielding region at 9%, followed closely by the North West at 8.5%. Yorkshire & Humberside and Wales both delivered a strong performance with yields climbing to 8.2%, while the South West (7%) and East Anglia (6.6%) posted some of the largest annual improvements.
Fleet said these regions continue to hold an attraction for landlords due to the combination of yield strength, comparatively lower property prices, and strong levels of tenant demand, particularly when supply remains constrained.
At the national level, average yields across England and Wales rose by 0.3% year-on-year to reach 7.5%, which Fleet said reflected a period of stability underlining the long-term resilience of the sector.
While two of the regions in which Fleet lends did record minor annual dips – the North East (-0.7%) and West Midlands (-0.1%) – these were modest in scale and offset by strong uplifts elsewhere.
The biggest yearly gain came from Wales, which saw yields rise by a full percentage point. Other notable increases included the South West (+0.9%), East Anglia (+0.7%), and Yorkshire & Humberside (+0.5%).
| Region | 2024 Q3 | 2025 Q3 | Y/Y change |
|---|---|---|---|
| North East | 9.7% | 9.0% | -0.7% |
| North West | 8.0% | 8.5% | 0.5% |
| Wales | 7.2% | 8.2% | 1.0% |
| Yorkshire & 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 continued to shift across the quarter. Average monthly rents across Fleet’s lending areas rose by 3.2% in Q3, with Greater London (£2,165), the South East (£1,662), and the West Midlands (£1,563) recording the highest levels.
Annual rent growth stood at 10.4%, driven by double-digit increases in the West Midlands (+21.2%), North East (+20.8%) and Yorkshire & Humberside (19.2%), following closely behind.
At the same time, quarterly variations were stark, with significant rises in the West Midlands (36.4%) and Yorkshire & Humberside (25.3%) offset by falls in East Anglia (-8.5%), Wales (-7.6%) and Greater London (-7%). Fleet said the differences reflected how localised supply-and-demand imbalances continue to shape outcomes for landlords and advisers.
The data also underscored a wider trend towards consolidation and professionalisation.
Limited company borrowing accounted for 81% of Fleet’s Q3 applications, underlining the dominance of corporate structures as landlords look to manage costs and compliance more effectively.
Portfolio landlords continue to be increasingly prominent, with over 61% of applications coming from those holding four or more properties and nearly a quarter (23%) from landlords with 15 or more – up sharply from 16% in Q2. First-time landlord activity held at 12%, suggesting new entrants are still being drawn to the sector.
Broader market conditions shifted slightly in Q3 following a cut in the Bank of England Base Rate from 4.25% to 4% during the three months. Mortgage pricing responded, with peer market average rates falling by around 20bps on two-year fixes and 15bps on five-year fixes. Fleet also reduced its own five-year rates by 10bps to 5.04%, while its two-year fixes remained at an average of 4.35%.
Purchase business continued to make up more than a third of Fleet’s mortgage business, at 38%, with remortgaging and product transfers making up the rest of the applications received.
Steve Cox, Chief Commercial Officer at Fleet Mortgages, commented:
“Our latest Rental Barometer reinforces just how resilient and adaptable the private rental sector, and specifically landlord activity within it, has become. Yields across England & Wales edged up for the second quarter in a row, driven by sustained tenant demand and a market that, while challenging, continues to offer opportunities for well-structured and well-capitalised landlords.
“What we are witnessing is a marked shift towards professionalism. Over four-fifths of our applications are now from limited companies, and the growth in landlords with 15 or more properties is particularly striking. Rather than exiting the sector, many landlords are scaling up, refinancing portfolios, and structuring their businesses in ways that help them absorb regulatory and cost pressures more effectively, while still pursuing property purchases.
“Affordability remains a hurdle, especially for those entering the market for the first time, but with tenant demand consistently outstripping supply, rental growth continues to be a strong driver of yields. This dynamic, combined with more competitive mortgage pricing following the Bank of England’s recent rate cut, gives advisers plenty of reasons to talk positively about the sector’s long-term outlook with their landlord borrower clients.
“The message from our data is clear: buy-to-let remains a viable and attractive proposition for professional landlords who are prepared to adapt, and for advisers who want to support their clients in building sustainable portfolios.”
The full Fleet Mortgages’ Rental Barometer can be viewed by visiting: https://www.fleetmortgages.co.uk/broker-resources/