Rental yields across England and Wales continue to rise on both an annual and quarterly basis.
Fleet Mortgages says national average yields rose by 0.3% annually and 0.2% quarterly to reach 7.7%.
The North East remained the top-yielding region moving up by 0.3% annually and 0.6% quarterly to 9.6%.
Meanwhile four regions – Yorkshire and Humberside, the North West, the West Midlands and East Midlands – posted yields at 8% and above.
Fleet says the North/South yield ‘divide’ is narrowing. The South West, East Anglia, South East and Greater London all posted a yearly increase in average yield.
Fleet Mortgages Rental Barometer Q4 2025 – Average Rental Yields
| Region | Q4 2024 | Q4 2025 | Y/Y Change |
| North East | 9.3% | 9.6% | 0.3% |
| Yorkshire & 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% |
Limited company borrowing accounted for 76% of Fleet’s Q4 applications, slightly down from the high of 81% in Q3.
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.
Fleet’s full report is here: https://www.fleetmortgages.co.uk/broker-resources/
