Landlords in the North East of England are making 9.0% yields in the third quarter of 2025, Fleet Mortgages’ latest Buy-to-Let Rental Barometer for Q3 2025 has revealed.
This still represents a reduction from 9.7% year-on-year.
Other high yielding areas are the North West (8.5%), Wales and Yorkshire & Humberside (both 8.2%).
Steve Cox, chief commercial officer at Fleet Mortgages, said: “Yields are edging upwards, rents are growing across many regions, and tenant demand remains strong. For landlords, that means ongoing opportunities to generate good returns from property investment.
“What we are also seeing is landlords adapting how they operate. More are running their portfolios through limited companies, more are scaling up, and more are building for the long term.
“That level of professionalisation is a positive sign; it demonstrates that landlords are not leaving the market, but are instead putting themselves in a better position to deal with regulatory and financial challenges.”
The West Midlands saw rents climb by over 21% year-on-year, with the North East close behind at just over 20%.
Yorkshire & Humberside also delivered almost 20% annual growth. Even where quarterly falls were recorded, such as in East Anglia, Wales and London, the long-term trend remains firmly upwards.
Cox added: “There are, of course, hurdles – affordability remains a key issue, and new regulations such as the forthcoming Renters’ Rights Bill, are adding to the burden.
“But the fundamentals remain in landlords’ favour. Demand is not going away, supply is still constrained, and competitive mortgage pricing is beginning to return.
“For landlords who are prepared to adapt, buy-to-let remains a viable and rewarding investment.”
Larger portfolio landlords are playing a greater role: over 61% of applications came from those with four or more properties, and those with 15 or more properties now make up almost a quarter of all Fleet’s business – a sharp rise from just 16% in the previous quarter.
