Average annual rental yields across England and Wales increased to 7.9% in Q3 2026, according to Fleet Mortgages’ latest Buy-to-Let Rental Barometer.
The Fleet Mortgages Quarterly Rental Barometer provides a regional snapshot of rental yield trends alongside lending and borrower data, with the latest results showing average yields increased by 0.4% year-on-year, from 7.5% in Q3 2025 to 7.9% in Q3 2026.
The regional picture was also broadly positive, with only two of the 10 regions covered by Fleet – the North West and Wales – recording an annual fall in average yields.
Quarter-on-quarter, only East Anglia, the North West and Wales experienced a decline, while the North East remained unchanged at 9.2%.
Yorkshire & Humberside moved to the top of the regional yield table during Q3, increasing from 8.2% a year ago and 8.7% last quarter to 9.3%.
The North East was second at 9.2%, while the North West, East Midlands and West Midlands all continued to deliver average yields above 8%.
| Average Rental Yields | y/y change | ||
| Region | 2025 Q3 | 2026 Q3 | |
| Yorkshire and Humberside | 8.2% | 9.3% | 1.1% |
| North East | 9.0% | 9.2% | 0.2% |
| East Midlands | 7.5% | 8.4% | 0.9% |
| North West | 8.5% | 8.3% | -0.2% |
| West Midlands | 7.5% | 8.2% | 0.7% |
| Wales | 8.2% | 7.5% | -0.7% |
| South East | 6.5% | 7.2% | 0.7% |
| South West | 7.0% | 7.1% | 0.1% |
| East Anglia | 6.6% | 7.0% | 0.4% |
| Greater London | 5.9% | 6.4% | 0.5% |
| England & Wales (Total) | 7.5% | 7.9% | 0.4% |
Greater London remained the lowest-yielding region at 6.4%, although it continued to command the highest average monthly rent at £2,597, up nearly 10% since Q2.
At the other end of the rental value table, the North East recorded the lowest average monthly rent at £792, down just over 6% since the last Barometer.
Fleet said the Q3 figures also provided further evidence of the continuing professionalisation and growth of the landlord community, despite another quarter characterised by volatile financial markets and mortgage pricing.
The average number of investment properties owned by Fleet borrowers increased from 16 in Q2 to 18 in Q3, compared with 12 properties in Q3 2025. Landlords with 15 or more buy-to-let properties accounted for 30% of applications during the quarter, up from 26% in Q2 and 23% a year ago, while 66% of applications came from landlords owning four or more properties.
At the same time, the proportion of applications from landlords with between one and three properties fell from 29% in Q2 to 24%, while first-time landlord applications edged upwards from 9% to 10%.
Purchase activity eased during the quarter, accounting for 34% of Fleet business compared with 36% in Q2, although this remained above the 33% recorded during Q1.
Average rental cover at origination fell from 144% to 132%, reflecting the affordability pressures created by higher mortgage rates and funding costs.
Limited company borrowing continued to dominate, accounting for 71% of all applications during Q3, although this was down from 78% in the previous quarter.
Mortgage pricing continued to reflect the volatility seen during the quarter, with the average market two-year fixed rate increasing from 4.78% to 4.89% and the average five-year fixed rate rising from 5.44% to 5.57%.
Fleet’s own average two-year pricing increased from 4.50% to 4.61%, while its average five-year rate moved in the opposite direction, falling by 18 basis points from 5.35% to 5.17%.
Steve Cox, Chief Commercial Officer at Fleet Mortgages, comments: “Q3 has been another quarter in which advisers and their landlord clients have had to deal with considerable uncertainty, particularly as geopolitical developments have continued to feed through into energy prices, inflation expectations, swap rates and ultimately mortgage pricing.
“It is therefore not surprising to see purchase activity ease slightly during the quarter, or rental cover come under further pressure, but we should be careful about interpreting either of those movements as landlords stepping away from buy-to-let.
“In fact, some of the other figures point very strongly in the opposite direction. The average Fleet landlord now owns 18 investment properties compared with 12 a year ago, almost a third of our applications are coming from landlords with 15 or more properties, and two-thirds are from those owning at least four.
“That suggests professional landlords continue to grow their portfolios where the right opportunities present themselves, even if market conditions influence precisely when they decide to purchase or refinance.
“The rental fundamentals also remain supportive, with average England and Wales yields increasing to 7.9% and only two of the 10 regions we lend in recording a year-on-year fall. Yorkshire & Humberside moving to 9.3% also shows there continue to be strong regional opportunities for landlords prepared to look at the underlying rental and property fundamentals.”
The full Fleet Mortgages’ Rental Barometer can be viewed by visiting: https://www.fleetmortgages.co.uk/broker-resources/
