Reading the rental signals

Originally published on The Intermediary 

If there’s one thing we know about the buy-to-let market in 2025, it’s that nothing stands still for long.  

Our own latest Rental Barometer for Q2 2025 highlights this, and also draws attention to the dynamic and, often highly, regionalised nature of the private rental sector.  

Now, with the release of the ONS’s latest UK rental price statistics up to May 2025, we have an opportunity to cross-reference two powerful datasets to better understand what’s really happening on the ground, and to also provide some insight into how mortgage advisers can best respond. 

The headline from our own data is continued rental yield resilience. Yields edged up to 7.5% on average across England and Wales, up 0.1% on the quarter, though marginally down on an annual basis. The ONS paints a similarly consistent picture, reporting a 7% annual increase in UK private rents to May.  

Both datasets agree: rental income remains a key pillar of buy-to-let viability, especially as landlords continue to balance capital growth ambitions with income generation. 

What’s interesting – and useful for advisers – is how these two sets of data complement each other. For example, both Fleet and the ONS place Wales at or near the top of regional growth metrics. Fleet reports it as the highest-yielding region this quarter at 9%, while the ONS shows Wales’ average rent prices leading with 8.5% rental price growth – above the UK average. Similarly, the North West scores highly across both sources, reinforcing its status as a hotspot for strong yields and solid rental inflation. 

That alignment offers a level of reassurance for advisers looking to help clients assess long-term investment potential. If the independent ONS and a leading buy-to-let lender such as ourselves are both seeing upward movement in rents and yields in the same regions, that’s a robust signal.  

Interestingly, the ONS includes both within-tenancy and new tenancy increases in rental pricing within its data, which gives a strong catch-all picture, and clearly highlights that in nearly all regions of England & Wales, rental yield levels are solid and continuing to deliver what landlords are seeking.  

So, what does all this mean for advisers working with landlord clients now and over the second half of 2025 and beyond? First, it reinforces the need to look beyond the headlines.  

Regional differences are clearly there and need to be taken into account – whether in yield, rental growth or property affordability – because advisers have to understand how unique that regional picture might be, and consequently dig into the detail when assessing borrowing capacity, cash flow potential, and return on investment. A client buying in Manchester will face a very different rental economics profile to one buying in Milton Keynes or Cardiff, even if the loan amount is the same. 

Secondly, advisers should be ready for questions about timing. With Bank Base Rate now at 4.25% and Fleet’s average two- and five-year fixed rates down to 4.35% and 5.13% respectively – both below the peer average – many landlords are actively reviewing their funding options because of a more competitive product environment. Whether that means a remortgage for better pricing, a new purchase to grow a portfolio, or an exit from high-debt loans, advisers need to be across product trends and landlord appetite. 

Third, clients will want context. They’re reading about landlord licensing in Wales, and EPC deadlines in England. Many will be wondering whether to hold, grow or exit. With Fleet’s data showing that 81% of applications are now through limited company structures, and 55% from landlords with four or more properties, it’s clear the professional end of the market is accommodating all of this change and still expanding. Advisers should be equipped to talk about incorporation, long-term tax efficiency, and how to use refinancing strategically. 

Fourth, advisers need to be prepared for more granular questions about affordability. Clients will require support recalibrating their borrowing expectations or structuring deals differently – perhaps releasing equity, or indeed transitioning into higher-yielding property types such as HMO/MUFB properties to maximise income potential. 

Finally, advisers should know they don’t have to do this alone. At Fleet, we continue to deliver competitive pricing, a growing range of products, options and criteria, and a deep understanding of landlord needs.  

We continue to lend to the kinds of experienced landlords and new entrants who are shaping the next generation of private rental provision. We also provide transparent criteria, consistent underwriting, and regional insight to support every adviser conversation. 

In summary, the data tells us that buy-to-let remains a complex but opportunity-rich environment. The ONS and Fleet numbers may differ in places, but together they show a market that is active, resilient, and increasingly professionalised. For advisers, that means staying informed, staying proactive, and above all, staying close to clients.