Rental yields rise across England and Wales to 8.1%

Rental yields rose across every region of England and Wales over the past year, pushing the national average to 8.1% in the first three months of 2026.

According to Fleet Mortgages, comparing the first quarter with the same period last year, shows yields up 0.7% annually and 0.4% on the quarter.

The North East again led the table at 9.8%, having increased by 0.6% year-on-year and 0.2% since Q4.

Its latest Rental Barometer also shows that six regions are now above the 8% mark, including Yorkshire and Humberside, then the West Midland.

Also in that category are the North West, Wales and the East Midlands.

Landlord yields rise

The lender’s chief commercial officer, Steve Cox, said: “This latest rental barometer shows a very positive picture for much of Q1, with rental yields rising across every region in England and Wales on an annual basis, and only one region showing any sort of quarterly dip.

“That reflects the strength of tenant demand and the ability of landlords to generate solid income returns, with average yields now sitting above 8% nationally.”

He added: “However, it is important to stress that much of this data reflects the first two months of the quarter, when conditions were far more stable and pricing was easing.

“The market we are operating in today looks very different and continues to be extremely volatile for obvious reasons.”

Yields fall in Greater London

The data also shows that yields in the South West and South East also edged up, though Greater London was the only area to record a quarterly decline.

Landlord costs were mostly stable in the first quarter, but things changed in March with buy to let mortgage market rate volatility.

Fleet also says that landlord investing activity accounted for 33% of applications in Q1, down from 37% in the previous quarter.

The lender expects current conditions to weigh more heavily on purchase business than on remortgage or product transfers.

Limited company borrowing up

Meanwhile, loan sizes increased to an average of £210, and limited company borrowing made up 78% of all applications.

Plus, 63% of applications came from landlords with at least four properties.

The proportion of landlords holding 15 or more properties reached 30% during the quarter.

Mr Cox said: “The underlying fundamentals of the UK private rental sector remain incredibly strong.

“We are continuing to see landlords looking to grow their portfolios, larger portfolio operators increasing their presence, and a sustained shift towards limited company borrowing.”