"The message from our data is clear: buy-to-let remains a viable and attractive proposition for professional landlords who are prepared to adapt, and for advisers who want to support their clients in building sustainable portfolios"
- Steve Cox - Fleet Mortgages
Landlords across England and Wales continue to benefit from strong rental yields, with most regions posting annual increases and only two recording minor dips, according to Fleet Mortgages’ latest Buy-to-Let Rental Barometer for Q3 2025.
The Fleet Mortgages Quarterly Rental Barometer provides a regional snapshot of rental yield trends, comparing Q3 2024 with Q3 2025. The new data highlights ongoing strength in rental yields across much of the country.
The North East remained the top-yielding region at 9%, followed by the North West at 8.5%. Yorkshire & Humberside and Wales both recorded yields of 8.2%, while the South West (7%) and East Anglia (6.6%) showed some of the largest annual improvements.
Fleet said these regions continue to appeal to landlords due to strong yields, comparatively lower property prices, and high tenant demand, particularly where supply remains constrained.
At the national level, average yields across England and Wales rose by 0.3% year-on-year to reach 7.5%, reflecting a period of stability that underlines the sector’s long-term resilience.
Two regions did see minor annual dips – the North East (-0.7%) and West Midlands (-0.1%) – though these were modest and offset by strong uplifts elsewhere. Wales recorded the largest annual increase, rising by a full percentage point, followed by the South West (+0.9%), East Anglia (+0.7%), and Yorkshire & Humberside (+0.5%).
Rental values continued to shift during the quarter. Average monthly rents across Fleet’s lending areas rose by 3.2% in Q3, with Greater London (£2,165pcm), the South East (£1,662), and the West Midlands (£1,563) recording the highest levels.
Annual rent growth reached 10.4%, driven by double-digit rises in the West Midlands (+21.2%), North East (+20.8%) and Yorkshire & Humberside (19.2%). Quarterly variations were more pronounced, with significant rises in the West Midlands (+36.4%) and Yorkshire & Humberside (+25.3%) offset by falls in East Anglia (-8.5%), Wales (-7.6%) and Greater London (-7%). Fleet noted these differences reflect how local supply-and-demand imbalances continue to shape outcomes for landlords and advisers.
The data also highlighted a trend towards consolidation and professionalisation. Limited company borrowing accounted for 81% of Fleet’s Q3 applications, showing the dominance of corporate structures as landlords seek to manage costs and compliance more effectively.
Portfolio landlords are increasingly prominent, with over 61% of applications coming from those holding four or more properties, and nearly a quarter (23%) from landlords with 15 or more, up from 16% in Q2. First-time landlord activity remained at 12%, suggesting new entrants continue to be drawn to the sector.
Broader market conditions shifted slightly in Q3 after the Bank of England cut the base rate from 4.25% to 4%. Mortgage pricing responded, with peer market average rates falling by around 20bps on two-year fixes and 15bps on five-year fixes. Fleet reduced its own five-year rates by 10bps to 5.04%, while two-year fixes remained at an average of 4.35%.
Purchase business continued to make up more than a third of Fleet’s mortgage activity at 38%, with remortgaging and product transfers comprising the remainder.
“Our latest Rental Barometer reinforces just how resilient and adaptable the private rental sector, and specifically landlord activity within it, has become," explained Fleet Mortgages chief commercial officer, Steve Cox. "Yields across England and Wales edged up for the second quarter in a row, driven by sustained tenant demand and a market that, while challenging, continues to offer opportunities for well-structured and well-capitalised landlords."
He added, "What we are witnessing is a marked shift towards professionalism. Over four-fifths of our applications are now from limited companies, and the growth in landlords with 15 or more properties is particularly striking. Rather than exiting the sector, many landlords are scaling up, refinancing portfolios, and structuring their businesses in ways that help them absorb regulatory and cost pressures more effectively, while still pursuing property purchases."
"Affordability remains a hurdle, especially for those entering the market for the first time, but with tenant demand consistently outstripping supply, rental growth continues to be a strong driver of yields. This dynamic, combined with more competitive mortgage pricing following the Bank of England’s recent rate cut, gives advisers plenty of reasons to talk positively about the sector’s long-term outlook with their landlord borrower clients.
Cox concluded, "The message from our data is clear: buy-to-let remains a viable and attractive proposition for professional landlords who are prepared to adapt, and for advisers who want to support their clients in building sustainable portfolios.”
