Rental yields rise to 7.9% as portfolios grow
"Despite everything the sector has dealt with this year, experienced landlords are continuing to invest," says Fleet Mortgages' Steve Cox.
Average rental yields have hit 7.9%, while the average landlord has a portfolio of 18 properties, new figures have suggested.
The research by Fleet Mortgages provided a regional snapshot of rental yields and lending data across the three months between July and September of this year.
It found that yields were up 0.4 percentage points on a year earlier, rising from 7.5% in the same quarter of 2025.
At the same time, only two of the 10 regions covered recorded an annual fall in yields. The North West dropped to 8.3% and Wales fell to 7.5%.
Yorkshire and Humberside ranked top at 9.3%, up from 8.2% a year ago and 8.7% last quarter.
Despite everything the sector has dealt with during 2026, experienced landlords are continuing to invest and new landlords are still entering the market.”
The North East followed at 9.2%, while the North West, East Midlands and West Midlands all delivered yields of more than 8%.
Greater London remained the lowest-yielding region at 6.4%. However, it continued to have he highest average monthly rent at £2,597.
The North East recorded the lowest average rent at £792.
Portfolios growing
Meanwhile, the average number of investment properties owned by Fleet borrowers increased from 16 in the three months from April to June to 18 for the following three months of this year.
Landlords with 15 or more properties accounted for 30% of applications in the three months from July to September, up from 26% in the previous quarter.
A total of 66% of its mortgage applicants owned four or more properties.
Landlords with between one and three properties fell from 29% to 24%, while first-time landlord applications edged up from 9% to 10%.
Average rental cover fell from 144% to 132%, reflecting affordability pressure from higher mortgage rates.
Limited company borrowing continued to dominate at 71% of applications, down from 78%.
Regulatory change
It comes as landlords continue to deal with regulatory change, with the first phase of the Renters’ Rights Act now embedded.
In addition, the property registration service is rolling out in the West Midlands from 15th December before moving across England next year.
Steve Cox, Chief Commercial Officer of Fleet Mortgages, says: “Despite everything the sector has dealt with during 2026, experienced landlords are continuing to invest and new landlords are still entering the market.”
