Landlords across England and Wales continue to benefit from strong rental yields, with some dips observed year-on-year across regions both in the North and South, according to Fleet Mortgages’ latest BTL Rental Barometer for Q2 2025.
The barometer provides a regional snapshot of rental yield trends in England and Wales, comparing Q2 2024 to Q2 2025.
The data highlights continued strength in rental yields across most regions in line with the past 12 months.
Wales jumped to the top spot with average quarterly yields of 9%, followed by the North West with 8.8%, and the North East with 8.7%.
Fleet said these regions continued to hold an attraction for landlords due to the strength of yield achievable, plus a combination of lower property prices and sustained demand.
Across England and Wales, the average rental yield dipped by just 0.1% over the year, however quarter-on-quarter it was up by the same amount from 7.4% in Q1 2025 to 7.5% in Q2.
Four regions showed a slight dip on the yearly yield comparison, with the biggest dips being in the North East (-1.4%), the West Midlands (-0.8%) and East Anglia (-0.6%).
However, quarter-on-quarter figures revealed these three regions had seen only a 0.5% fall over the three months, with the expectation these current levels could be sustained for a longer period going forward.
The biggest yearly increase in yields came from Wales, which saw a 0.7% increase, while its quarterly increase was a significant 1.3%.
Other regions which also saw a quarterly increase included the East Midlands, the North West and the South West, which all saw a 0.4% uptick.
Steve Cox, CCO at Fleet Mortgages (pictured above), commented: “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.
“It’s particularly encouraging to see Wales now leading the table with a 9% average yield, and the North West and North East remaining highly competitive.
“These areas continue to offer landlords a compelling mix of yield, affordability, and tenant demand, all of which remain critical factors in building sustainable portfolios.
“While some Southern regions have lower yield percentages, this is normal given property prices.
“They continue to deliver in terms of capital appreciation, and monthly rental values remain high.
“The growth in rents across most regions – particularly the substantial 21.8% jump in the North East – illustrates tenant demand is still outpacing supply, supporting continued investment.
“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.
“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 BTL.
“Combined with strong rental yield and continued appetite, particularly from limited company landlords – now 81% of all applications – it shows there are still plenty of reasons to be optimistic about the future of the BTL sector.”
