Rental yields across England and Wales increased both year on year and quarter on quarter, according to Fleet Mortgages’ latest Buy-to-Let Rental Barometer for Q4 2025.
The Quarterly Rental Barometer provides a regional snapshot of rental yield trends, comparing Q4 2024 with Q4 2025. Nationally, average yields rose by 0.3 percentage points over the year and by 0.2 percentage points over the quarter, reaching 7.7%.
The North East remained the highest-yielding region, with yields rising by 0.3 percentage points annually and 0.6 percentage points quarterly to 9.6%. Yorkshire and Humberside, the North West, the West Midlands and the East Midlands also recorded average yields of 8% or more.
Fleet Mortgages said the gap between northern and southern regions continued to narrow, with the South West, East Anglia, the South East and Greater London all reporting annual increases in average yields.
| Average Rental Yields | y/y change | ||
| Region | 2024 Q4 | 2025 Q4 | |
| North East | 9.3% | 9.6% | 0.3% |
| Yorkshire and Humberside | 8.6% | 8.3% | -0.3% |
| North West | 8.3% | 8.2% | -0.1% |
| West Midlands | 6.6% | 8.1% | 1.5% |
| East Midlands | 7.7% | 8.0% | 0.3% |
| Wales | 8.2% | 7.6% | -0.6% |
| South West | 6.9% | 7.4% | 0.5% |
| East Anglia | 6.3% | 7.2% | 0.9% |
| South East | 6.4% | 6.6% | 0.2% |
| Greater London | 5.8% | 6.3% | 0.5% |
| England & Wales (Total) | 7.4% | 7.7% | 0.3% |
While three regions posted slight falls in yearly average yield, Fleet said the wider rental yield picture showed consistent strength, with landlords benefiting from good tenant demand, coupled with rising rental values.
The Rental Barometer data also highlighted further good news for landlord borrowers in terms of mortgage product rates. Fleet’s average two-year fixed-rate mortgage had reduced from 4.35% in Q3 to 4.27% in Q4, while its average five-year fixed rate had reduced from 5.04% to 4.97%.
Limited company borrowing accounted for 76% of Fleet’s Q4 applications, slightly down from the high of 81% in Q3, while those landlords with over six buy-to-let properties made up 55% of all those applying for mortgages with Fleet during the quarter. The average number of investment properties held by Fleet landlord borrowers was up to 14 from 12 last quarter.
First-time landlord application activity dipped slightly to 11% from 12% last quarter, but the lender suggested this was still a strong number, highlighting the ongoing attractiveness of buy-to-let property investment.
Purchase business continued to make up more than a third of Fleet’s mortgage business, at 37%, with remortgaging and product transfers making up the rest of the applications received.
Steve Cox, chief commercial officer at Fleet Mortgages, commented: “As this latest Rental Barometer confirms, average rental yields have continued to move in the right direction, both year-on-year and quarter-on-quarter, which will be welcome news for landlords.
“At a national level, yields are now close to 8%, while a number of regions are above that level. Regions in the North continue to lead the way but it is also a real positive to see yields rising across much of the South, which points to a more even market.
“While a small number of regions saw slight dips, the wider picture remains solid. We are seeing portfolios grow, with the average number of properties held by our landlord clients increasing again this quarter, showing ongoing confidence in buy-to-let investment.
“At Fleet we remain fully committed to the buy-to-let sector and to supporting advisers and their landlord clients. That means offering a wide range of keenly-priced products across our three core areas: standard, limited company and HMO/MUFB. Alongside improving mortgage rates, and greater levels of affordability, this breadth of choice helps advisers place cases with confidence in a market that continues to offer clear long-term opportunities.”
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