Annual rental yields across most of England and Wales continued to rise despite recent dips, says specialist lender Fleet Mortgages.
Its Quarterly Rental Barometer provides a regional snapshot of rental yield trends with this iteration comparing Q2 2026 to Q2 2025.
At a national level, average yields for England and Wales rose by 0.3% annually to 7.8%; quarter-to-quarter there has been a short-term dip from 8.1% in Q1.
There has been movement in the regional table since the last quarter, but the North East region continues to lead with annual rental yields up by 0.5%, however quarter-to-quarter it too has seen a fall of 0.6% to 9.2%.
The North West has moved into second spot with an average rental yield of 8.8% and six regions continue to hold above 8%, with the other four being Yorkshire & Humberside, Wales, and both the East and West Midlands.
Higher-yielding areas in the North and Midlands are continuing to outperform the South, with Wales and the South West seeing an annual fall.
However, the majority of regions have seen a quarterly fall in average yields, with the only exceptions being the East Midlands, Greater London and the North West which saw increases, and the South East which stayed the same.
| Region | 2025 Q2 | 2026 Q2 | Y/Y Change |
| North East | 8.7% | 9.2% | 0.5% |
| North West | 8.8% | 8.8% | 0.0% |
| Yorkshire and Humberside | 7.9% | 8.7% | 0.8% |
| Wales | 9.0% | 8.1% | -0.9% |
| East Midlands | 7.5% | 8.1% | 0.6% |
| West Midlands | 7.2% | 8.0% | 0.8% |
| East Anglia | 6.2% | 7.1% | 0.9% |
| South East | 6.5% | 6.9% | 0.4% |
| South West | 7.1% | 6.6% | -0.5% |
| Greater London | 6.0% | 6.3% | 0.3% |
| England & Wales (Total) | 7.5% | 7.8% | 0.3% |
Steve Cox, Chief Commercial Officer at Fleet Mortgages, comments: “Q2 for the buy-to-let, and wider, mortgage market has effectively been a ‘flip reverse’ of Q1. It began with considerable uncertainty as financial markets reacted to events in the Middle East, funding costs increased and lenders had to adjust pricing accordingly.
“However, the latter weeks of June in particular have been much more encouraging, with greater stability returning, swap rates easing and lenders like ourselves once again able to compete through lower rates and a broader range of products.
“While it’s important not to assume this calmer environment will continue indefinitely, the market is undoubtedly ending the quarter in a stronger position than many expected a few months ago. The MPC has held Bank Base Rate, inflation looks like it has, to some extent, been contained and advisers have a much-improved range of options for their landlord borrower clients.
“Our figures also continue to show professional landlords remain active. Purchase activity has picked up, portfolio landlords continue to expand where opportunities exist and limited company borrowing remains the preferred route for most investors. Those are all positive indicators for the underlying strength of the buy-to-let sector.
“Periods of volatility have become a feature of the mortgage market rather than an exception, and advisers and landlords increasingly understand this ‘new normal’. The important point is that when conditions improve, as they have during the latter part of this quarter, the market is able to respond quickly, providing borrowers with greater choice and improved pricing.
“That should give confidence as we move into the second half of the year, even if we continue to expect markets to remain sensitive to wider economic, UK political and geopolitical events.”
This article is taken from Landlord Today