Landlord yields rise across most regions – Fleet

Landlords saw average yields rise in eight of England and Wales’s 10 monitored regions over the past year.

Fleet Mortgages’ latest quarterly barometer puts the average at 7.9% in Q3 2026, compared with 7.5% a year earlier.

Yorkshire and Humberside moved to the top of the table, overtaking the North East after yields increased from 8.2% to 9.3%.

However, Wales recorded the highest proportion of purchase applications despite being one of only two regions where yields fell year on year.

Landlord purchase activity

Steve Cox, Fleet’s chief commercial officer, said: “What is equally interesting is the regions with the highest yields are not necessarily those recording the greatest levels of purchase activity.

“Wales had the highest purchase proportion during Q3 at 46% despite yields falling during the quarter, while purchase activity in the South West increased considerably at the same time as yields recovered to 7.1%.”

He added: “That reinforces why landlords need to look at the complete investment picture rather than focusing on any one number.

“Yield is clearly important, but so are achievable rents, property prices, financing costs, tenant demand, property type and the prospects for that investment over the longer term.”

Regional buy to let yields

The East Midlands recorded the second-largest annual yield increase, up 0.9 percentage points to 8.4%, while the West Midlands and South East each gained 0.7 percentage points.

In the North West, yields dipped from 8.5% to 8.3%, the only annual decline outside Wales.

Greater London remained at the bottom of the yield table at 6.4%, although its average monthly rent rose from £2,364 in Q2 to £2,597 in Q3, the highest recorded.

Meanwhile, the South West’s share of purchase applications increased from 23% to 34% over the quarter as yields recovered.

Landlord portfolios grow

The average Fleet landlord owned 18 investment properties in Q3, compared with 16 in the previous quarter and 12 a year earlier.

Landlords with at least 15 properties accounted for 30% of applications.

Two-thirds of applications came from those owning four or more properties.

First-time landlords also increased their share of applications slightly, from 9% in Q2 to 10% in Q3.