Tower Hamlets tops London buy to let yield table
4 weeks ago
Landlords consider selling up despite rising yields
12:01 AM, 17th June 2026, 3 weeks ago
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More than two in five landlords may sell off part of their property portfolios despite reporting stronger yields, Aldermore reveals.
The lender says that 42% of landlords are considering portfolio cuts as regulation, taxation and property costs weigh on investment decisions.
Its latest Buy to Let Index found that nearly half of those surveyed (47%), said their yields had increased during the past year, with the average rise reaching 7.2%.
Almost one in five landlords, (18%), reported yield growth of at least 10%.
Landlords don’t want to invest
Jon Cooper, Aldermore’s director of mortgages, said: “What we’re seeing is a clear disconnect in the private rental sector (PRS).
“Demand from tenants remains strong and landlords are seeing improved yields, but increasing regulation, tax changes and rising costs mean many are hesitant to invest further.”
He added: “It’s vital for the overall health of the PRS that landlords feel confident enough to continue providing a good standard of accommodation, as well as invest in their portfolios.”
Market conditions affecting landlords
Despite higher yields, 45% of landlords said current market conditions were preventing them from expanding their portfolios, even though tenant demand remains strong.
The research found no evidence of a widespread sell-off, and of those considering selling, 43% point to tighter regulation, including the Renters’ Rights Act, while 39% pointed to tax changes.
Maintenance costs were highlighted by 37%, and 30% said landlords were being unfairly blamed for broader problems in the housing system.
However, more than half (55%) said higher tax rates on dividends, property and savings could push them to leave the sector.
Tags:
buy to let yields, landlord property portfolios, Landlord tax changes, landlords selling properties, Private Rented Sector, Renters’ Rights Act
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Member Since June 2026 - Comments: 6
8:28 PM, 17th June 2026, About 3 weeks ago
The 42% figure says it all. Strong yields, strong demand, but landlords are still pulling back, that’s a confidence problem, not an investment one. The real risk is what happens to those homes if they do sell. If they leave the rental sector altogether, tenants lose out twice over. The question for anyone in that 42% isn’t just whether to sell, but who to sell to.
Member Since March 2022 - Comments: 376
10:44 AM, 18th June 2026, About 3 weeks ago
Stronger yields are one thing, but is it worth the risk when that yield could be wiped out by a fine for quite a simple slip up, or by a tenant not paying rent and smashing the place up for about a year? Leaving you with loss of rent (which you probably will never get back), legal bills and redecorating/building costs. This could all spell the end for a small landlord
To mitigate these risks you need to have a large portfolio and a team of lawyers on tap so one or two rentals going wrong will not bankrupt you. That’s the way the PRS is going and poorer tenants will not get a look in
Member Since June 2026 - Comments: 6
10:51 AM, 18th June 2026, About 3 weeks ago
Reply to the comment left by northern landlord at 18/06/2026 – 10:44
You’re right that scale changes the risk equation completely. A void or a bad tenant that could break a small landlord is just a bad month for a larger operator with the systems and people to handle it properly. That’s exactly why so many landlords are reaching the conclusion you’re describing.
Where I’d push back slightly is the ending. Scale doesn’t have to mean poorer tenants lose out, it can mean the opposite, if the operator is set up the right way. Larger portfolios can absorb a bit more risk on affordability precisely because one tricky tenancy doesn’t sink the whole operation. The risk is if scale ends up in the hands of operators who treat it purely as a numbers game. That’s the bit the sector needs to get right as it consolidates.
Member Since October 2023 - Comments: 43
1:42 PM, 18th June 2026, About 3 weeks ago
You’d have to be crazy now to buy and rent now, both governments have been nailing to coffin on this for years and will keep doing it for votes.
Then will have a bigger homeless problem. And as ever point at each other for the mess they created.