Azfar Rizvi, commercial director, commercial real estate, Aldermore, explores how residential landlords and commercial real estate investors are navigating a shifting UK rental...

Average rental yields reached 7.7% across England and Wales in Q4 2025.

Houses in Multiple Occupation achieved the highest yields at the end of 2025 at 8.61%, up 0.20 percentage points year-on-year.

Average rental yields across England and Wales reached 7.7%, rising 0.3% annually and 0.2% quarterly in Q4 2025.

89% of landlords report deriving a profit from their lettings activity, the highest percentage since 2019.

Landlords in Wales achieved an average gross yield of 8.84% in Q3, up from 8.59% in Q2, according to newly released data from Paragon Bank.

Average rental yields across England and Wales increased from 7.2% to 7.5% over the past year.

Second cities have been found to outperform traditional hubs in terms of rental returns, with Ipswich experiencing a yield increase of 1.1 percentage points since 2023.

Yields are above 7% in the North West, North East, and East Midlands, with London at 6.1%.

13 of the top 20 yielding towns host Russell Group universities.