Investors across the West Midlands have seen rental yields improve by 1.5% year-on-year, driving an annual increase of 0.3% across England & Wales.
Rental yields are the strongest in the North East, at 9.6%, while they are weakest in Greater London, at 6.3%.
For landlords operating in the South, yields also moved higher across all southern regions.
Steve Cox, chief commercial officer at Fleet Mortgages, said: “Our latest Rental Barometer shows rental returns remain strong across England and Wales, with average yields continuing to move up.
“For landlords, this reflects a market where tenant demand is still high, supply is not keeping pace and rental values are thus holding firm, helping to support income even as costs remain under pressure.”
Only three out of 10 regions saw yields worsen, Wales (-0.6% to 7.6%), Yorkshire & the Humber (-0.3% to 8.3%), and the North West (0.1% to 8.2%).
Cox added: “What stands out is not just the performance of the North, but the fact yields are rising across much of the South as well. This points to a more even rental market, where landlords in a wider range of locations are seeing improved returns rather than growth being concentrated in just a few areas.
“We are also seeing landlords act with confidence. Portfolio sizes continue to increase, and limited company borrowing remains the main route for many investors. That tells us landlords are planning ahead, managing their businesses carefully, and taking a long-term view of buy-to-let.
“With mortgage rates easing again and affordability improving, conditions are becoming more supportive for both refinancing and new purchases. Demand for rental homes is not going away, supply remains tight in many regions, and that combination continues to underpin buy-to-let as a reliable source of income for committed landlords.”
