The North West and Wales only regions to see fall
Average rental yields have risen year-on-year across eight out of 10 regions in England and Wales, according to the latest Q3 Rental Barometer from Fleet Mortgages.
It showed that the average annual rental yield across England and Wales has increased to 7.9%, up from 7.5% in Q3 2025.
Yorkshire & Humberside moved to the top of the regional yield table, with average yields increasing from 8.2% in Q3 2025 to 9.3% this year, a rise of 1.1%. East Midlands recorded the second-largest annual increase, rising by 0.9% to 8.4%.
The West Midlands and South East both recorded annual increases of 0.7%, reaching 8.2% and 7.2% respectively, while Greater London saw its average yield increase from 5.9% to 6.4%.
The North East remains one of the strongest regions for rental returns at 9.2%. The North West alongside Wales, were the only regions to record year-on-year reductions in average yields.
In the North West, there was an annual 0.2% reduction and in Wales a 0.7 fall, although average yields remain above 8% in the North West.
Proportion of purchase business
Yorkshire & Humberside combined the highest average yield at 9.3% with purchase business accounting for 43% of Fleet applications in the region during Q3. However, Wales recorded the highest proportion of purchase business of any region at 46%, despite average yields falling from 8.1% in Q2 to 7.5% in Q3 and average monthly rents reducing from £1,214 to £1,079.
The South West also recorded a significant increase in purchase activity, rising from 23% of applications in Q2 to 34% in Q3, alongside an increase in average yields from 6.6% to 7.1%. At the other end of the yield table, Greater London continued to deliver the lowest average yield at 6.4%, but average monthly rents increased from £2,364 in Q2 to £2,597 in Q3, the highest of any region covered by Fleet’s Barometer.
The average Fleet landlord owned 18 investment properties during Q3, up from 16 in the previous quarter and 12 a year ago. 30% of applications came from landlords with portfolios of 15 or more properties, two-thirds from landlords owning four or more properties, while first-time landlord applications also increased slightly from 9% in Q2 to 10% in Q3.
Steve Cox, chief commercial officer at Fleet Mortgages, said: “Landlords have had an enormous amount to consider during 2026, from changing mortgage pricing and funding costs through to the Renters’ Rights Act and the wider economic environment, but rental yield remains one of the most important numbers when assessing any potential investment.
“What is interesting is the regions with the highest yields are not necessarily those recording the greatest levels of purchase activity. Wales had the highest purchase proportion during Q3 at 46% despite yields falling during the quarter, while purchase activity in the South West increased considerably at the same time as yields recovered to 7.1%.
“That reinforces why landlords need to look at the complete investment picture rather than focusing on any one number.”
