Landlords saw average rental yields increase year-on-year in eight of 10 regions across England and Wales, according to the latest Rental Barometer from buy-to-let and specialist lender Fleet Mortgages.
The quarterly barometer gives a regional snapshot of yields, rents and landlord activity. The Q3 2026 edition put the average annual rental yield across England and Wales at 7.9%, up from 7.5% in Q3 2025.
Only the North West and Wales recorded lower yields than a year earlier. Yorkshire and Humberside moved to the top of the table after a strong 12 months, with its average rising from 8.2% to 9.3%, an increase of 1.1%. The East Midlands posted the second-largest rise, up 0.9% to 8.4%.
The West Midlands and South East each gained 0.7%, reaching 8.2% and 7.2% respectively, while Greater London rose from 5.9% to 6.4%. The South West edged up from 7.0% to 7.1%, and East Anglia climbed from 6.6% to 7.0%. The North East remains among the strongest regions for returns at 9.2%, and the North West still averages above 8% despite a 0.2% fall.
Higher rental yields do not always bring more purchases
Fleet said the regional figures show the different investment dynamics landlords face across England and Wales, with higher yields not always translating into more purchase activity.
Yorkshire and Humberside combined the highest average yield, 9.3%, with purchase business accounting for 43% of Fleet applications in the region during Q3. Wales, by contrast, recorded the highest share of purchase business of any region at 46%, even as its average yield slipped from 8.1% in Q2 to 7.5% in Q3 and average monthly rents fell from £1,214 to £1,079.
Purchases in the South West rose from 23% of applications in Q2 to 34% in Q3, alongside a yield increase from 6.6% to 7.1%. At the other end of the table, Greater London continued to deliver the lowest average yield at 6.4%, but its average monthly rent climbed from £2,364 to £2,597, the highest of any region in the barometer.
The latest figures also suggest experienced landlords continue to identify opportunities despite the changing financial and regulatory environment. The average Fleet landlord owned 18 investment properties during Q3, compared with 16 in the previous quarter and 12 a year ago.
Applications from landlords with portfolios of 15 or more properties made up 30% of the total, and two-thirds came from landlords with four or more properties. First-time landlord applications also edged up, from 9% in Q2 to 10% in Q3.
“Landlords have had an enormous amount to consider during 2026, from changing mortgage pricing and funding costs through to the Renters’ Rights Act and the wider economic environment, but rental yield remains one of the most important numbers when assessing any potential investment,” said Steve Cox, chief commercial officer at Fleet Mortgages (pictured).
“Our latest Barometer shows average yields are higher than they were a year ago in eight of the 10 regions in England and Wales we cover, with the overall average increasing from 7.5% to 7.9%.
“Yorkshire & Humberside has been particularly strong, moving to the top of our table at 9.3%, but there have also been sizeable annual increases in the East and West Midlands, the South East and Greater London.
“What is equally interesting is the regions with the highest yields are not necessarily those recording the greatest levels of purchase activity. Wales had the highest purchase proportion during Q3 at 46% despite yields falling during the quarter, while purchase activity in the South West increased considerably at the same time as yields recovered to 7.1%.
“That reinforces why landlords need to look at the complete investment picture rather than focusing on any one number. Yield is clearly important, but so are achievable rents, property prices, financing costs, tenant demand, property type and the prospects for that investment over the longer term.
“We are also seeing increasingly experienced landlords making those assessments, with our average landlord now owning 18 properties compared with 12 a year ago, while almost a third of applications are coming from those with portfolios of 15 or more.
“There will always be significant differences between regional and even local rental markets, but the fact average yields have increased across most of England and Wales over the last year should provide encouragement for landlords who continue to look for opportunities where the underlying numbers make sense.”
