Rents up across most regions
Rental yields across England and Wales have held steady despite some annual fluctuations, according to Fleet Mortgages’ Q2 2025 Buy-to-Let Rental Barometer.
The quarterly report, which tracks buy-to-let yield movements across regions, shows overall resilience in the private rental market, with the average yield rising slightly from 7.4% in Q1 2025 to 7.5% in Q2. On an annual basis, yields dipped marginally by 0.1%.
Wales recorded the highest average yield at 9%, up from 8.3% a year earlier. The North West followed at 8.8%, with the North East close behind at 8.7%. Fleet Mortgages noted these regions remain attractive to investors due to relatively low property prices and continued tenant demand.
Some regions experienced annual declines in yields. The North East saw the largest drop at 1.4%, followed by the West Midlands (down 0.8%) and East Anglia (down 0.6%). Despite these decreases, quarter-on-quarter changes were limited, suggesting a potential levelling in the months ahead.
Wales also posted the largest quarterly yield increase, rising 1.3%. The East Midlands, North West and South West each reported a 0.4% gain.
Fleet’s Rental Barometer also showed rental prices increased in several areas, with the North East seeing the most significant quarterly jump at 21.8%. Wales and Greater London followed with 7.8% and 6.5% increases respectively. However, four regions experienced quarterly declines in rental values, including the South East (down 3.5%) and West Midlands (down 5.8%).
Rental affordability continues to vary widely. Yorkshire & Humberside reported the lowest average rent at £861 per calendar month, while Greater London remained the highest at £2,328.
Landlord activity remained strong, with 39% of Fleet’s borrowers looking to purchase – unchanged from the previous quarter. In addition, 54% of borrowers owned four or more properties. First-time landlord applications stayed stable at 14%, indicating consistent new interest in the sector.
Limited company structures continued to dominate, accounting for 81% of all mortgage applications, while just 19% were in individual names.
Our latest Rental Barometer for Q2 2025 is now live! See more information here - https://t.co/77UoOQTTV3 pic.twitter.com/2wlbQvjdxB
— Fleet Mortgages (@FleetMortgages) July 4, 2025
Fleet also reported a decline in its average fixed rates. Its two-year fix dropped to 4.35%, and its five-year product fell to 5.13%, both lower than peer averages of 4.93% and 5.27%.
“Our latest Rental Barometer shows yields across England and Wales continue to hold firm, underlining the enduring strength of the private rental sector and landlords’ commitment to delivering the supply required by sustained tenant demand,” said Steve Cox (pictured), chief commercial officer at Fleet Mortgages.
He added that while annual yield reductions were seen in some regions, the data overall pointed to a stable outlook for landlords pursuing long-term returns.
“It’s clear landlords are still very much in the market – over half of our business continues to come from those with four or more properties, and purchase demand has held steady despite wider economic pressures,” Cox said. “It’s also pleasing to see first-time landlord activity staying consistent at 14%, which suggests new entrants are still seeing long-term value in buy-to-let.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
