The overall rental yield for England and Wales has begun 2025 higher than the previous year, according to new data from Fleet Mortgages.
The lender’s BTL Rental Barometer shows the average rental yield for England and Wales was 7.4% in the first quarter of 2025.
This is 0.3% higher than the first quarter of 2024, with increases being recorded throughout all but one region.
The only region to record a fall in rental yields during this time was Yorkshire and Humberside where the average rental yield fell from 8.5% to 8.1%.
Rental yields strengthened the most in the North East where these increased by 0.8% year-on-year, while Greater London only registered a 0.1% increase in this time.
This growth has made the North East the most valuable PRS region with average rental yields of 9.2%, compared to Greater London which was the lowest of 6%.
Despite this the lender’s data revealed the highest average monthly rent per property was generated within Greater London at £2,185.
Properties located within the North East typically contain the most affordable rental stock, with an average monthly rent of £739.
However, rental yield growth was different on a quarter-on-quarter basis.
Compared to the fourth quarter of 2024, North East rental yields were down 0.1% as were a number of other regions.
In contrast the West Midlands registered quarter-on-quarter growth of 1.1%.
“Rental yield levels are showing signs of stabilisation, however they are stabilising at a higher level due to the increases seen across most regions over the course of the last 12 months,” said Steve Cox, CCO at Fleet Mortgages (pictured above).
“That remains a real positive for landlords and much can be put down to the continued demand-supply imbalance, the fact rates have been moving downward, and affordability is easier to achieve across the board.”
