Fleet Mortgages released data that compares the first quarter of this year with the same period last year. The research shows yields are up 0.7% annually and 0.4% on the quarter.
The latest Rental Barometer from Fleet Mortgages also shows that rental yields in six regions are now above the 8% mark, including Yorkshire, Humberside, the West Midland, the North West, Wales and the East Midlands.
However, the North East leads at 9.8%. Property 118 says this figure has “increased by 0.6% year-on-year and 0.2% since Q4.”
Today’s market
The lender’s chief commercial officer, Steve Cox, said: “This latest rental barometer shows a very positive picture for much of Q1, with rental yields rising across every region in England and Wales on an annual basis, and only one region showing any sort of quarterly dip.
“That reflects the strength of tenant demand and the ability of landlords to generate solid income returns, with average yields now sitting above 8% nationally.”
He added: “However, it is important to stress that much of this data reflects the first two months of the quarter, when conditions were far more stable and pricing was easing.
“The market we are operating in today looks very different and continues to be extremely volatile for obvious reasons.”
Impact in Greater London
According to Property 118, "the data also shows that yields in the South West and South East also edged up, though Greater London was the only area to record a quarterly decline.”
Landlord costs this year (before March) were considered to be mostly stable, but things changed as the buy to let mortgage market became more volatile.
Fleet also says that landlord investing activity was the reason for 33% of applications in Q1. That figure is down from 37% in the previous quarter.
Property 118 says: “The lender expects current conditions to weigh more heavily on purchase business than on remortgage or product transfers.”
More information
You can read the full Rental Barometer Q1 2026 report here.
