The average rental yield in England and Wales increased to 7.7% in the fourth quarter of 2025, up 0.3% from the year before.
These findings, from Fleet Mortgages’ latest BTL Rental Barometer, show widespread rental growth across many regions in England and Wales.
The North East of England continues to be the highest yielding rental market at 9.6% after also recording growth of 0.3% over the preceding 12 months.
The West Midlands, with an average rental yield of 8.1%, recorded the sharpest growth with average rents increasing by 1.5% during 2025.
Greater London registered growth of 0.5% to lift average rental yields in the capital to 6.3%.
Only three regions recorded decreases over this time, with Wales recording the heaviest fall. The country now has an average rental yield of 7.6%, down 0.6% from the year before.
Yorkshire and Humberside and the North West were the other regions to record declines, of 0.3% and 0.1% respectively.
“As this latest Rental Barometer confirms, average rental yields have continued to move in the right direction, both year-on-year and quarter-on-quarter, which will be welcome news for landlords,” said Steve Cox, chief commercial officer at Fleet Mortgages (pictured above).
“While a small number of regions saw slight dips, the wider picture remains solid.
“We are seeing portfolios grow, with the average number of properties held by our landlord clients increasing again this quarter, showing ongoing confidence in BTL investment.”
