Average rental yields have risen across England & Wales over the past 12 months according to the latest Fleet Mortgages Rental Barometer, but many regions experienced short-term dips.
Compared to the second quarter of last year, annual rental yield increased across most regions but six out of 10 regions recorded a dip from the start of 2026.
At a national level, average yields for England & 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 continues to lead with annual rental yields up by 0.5%. However quarter-to-quarter it too has fallen 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.
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.
“[Q2] began with considerable uncertainty as financial markets reacted to events in the Middle East, meaning funding costs increased and lenders had to adjust pricing accordingly,” said Steve Cox, CCO at Fleet Mortgages (pictured above).
“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.”
