April recorded average BTL rental yield not seen since February 2011, according to new Paragon Bank figures.
The lender found that landlords achieved an average rental yield of 7.11% last month.
This is the highest average the BTL sector has generated since the 7.12% recorded 14 years prior.
Average rental yields have been climbing each month in 2025, with the last figure recorded being 6.94% at the end of 2024.
Paragon Bank also broke down average BTL rental yields on a regional basis.
Wales was found to have the highest average BTL rental yield at 8.43% and was the only British region to register above 8%.
The second highest was Yorkshire & Humberside with 7.97%, and the ‘North’ followed closely with 7.94%.
Scotland had an average BTL rental yield of 7.46% but sub-7% averages were recorded in the South East and London.
These regions recorded average BTL rental yields of 6.57% and 5.78%, respectively.
“While the most recent economic instability caused by the threat of Trump’s tariffs is understandably impacting business confidence across many sectors, these figures offer tangible evidence that BTL continues to offer strong returns for investors,” said Russell Anderson, commercial director of mortgages at Paragon Bank (pictured above).
“This is particularly true where landlords employ a strategy of targeting properties that offer higher returns, HMOs being the most obvious example, or investing in areas where property is relatively more affordable but benefits from the strong tenant demand we see all over the UK.”
