…and Greater London sees uplift
The North/South regional gap in rental yields has eased during the second quarter of 2026, according to Fleet Mortgages’ latest Rental Barometer.
It shows that nationally, average yields for England & Wales rose by 0.3% annually to 7.8%. However, they dipped from 8.1% by quarter.
Regionally, the highest average rental yields are still evident in the North East at 9.2%, but this figure has dropped by 0.6% from the previous quarter. Yorkshire and Humberside fell 0.3%, and the West Midlands was down 0.6%.
Meanwhile, yields grew in Greater London, up from 6.1% to 6.3% during the quarter, while in the South East yields held steady at 6.9%.
Fleet’s lending figures suggest that landlords remain active. Purchase business increased from 33% of applications in Q1 to 36% in Q2, while over 62% of applications came from portfolio landlords owning four or more properties. Limited company borrowing accounted for 78% of all applications.
Opportunities across a range of locations
Steve Cox, chief commercial officer at Fleet Mortgages, said: “Northern and Midlands regions, along with Wales, continue to offer some of the strongest rental yields in the country and remain attractive areas for landlords looking to maximise income.
“However, one of the more interesting themes from this quarter’s Rental Barometer data is that the gap between North and South does appear to be narrowing slightly, which suggests opportunities continue to exist across a much broader range of locations.
“Equally encouraging is the way the wider mortgage market has recovered over the course of the quarter. We started Q2 dealing with significant uncertainty as funding costs rose and pricing came under pressure, but conditions have improved considerably in recent weeks, allowing lenders to reduce rates and expand product choice once again.
“That creates a much more positive backdrop for landlords than appeared likely earlier in the quarter. Tenant demand remains strong, purchase activity has picked up again and professional landlords continue to invest where they see long-term value.”
