Tight supply compared to demand is continuing to push up both yields and rents, Fleet Mortgages\u2019 rental barometer for Q2 2025 has found.<\/p>\n
Average rents across all regions rose by 2.9% over the quarter, with particularly notable increases seen in the North East (+21.8%), Wales (+7.8%) and Greater London (+6.5%).<\/p>\n
Greater London remains the highest-value rental region, with average monthly rents now at \u00a32,328 per calendar month (pcm), followed by East Anglia at \u00a31,640pcm and the South East at \u00a31,520 pcm.<\/p>\n
In contrast, the most affordable rental regions are Yorkshire & Humberside at \u00a3861 pcm, the North East at \u00a3900pcm and Wales at \u00a31,061pcm, offering landlords attractive affordability profiles combined with increasingly competitive rental returns.<\/p>\n
Steve Cox, chief commercial officer at Fleet Mortgages, said: \u201cThese latest figures show the private rental sector continues to perform strongly, particularly for landlords who know how and where to invest.<\/p>\n
\u201cRent levels are rising in many areas, yields are holding up well, and we\u2019re still seeing plenty of appetite from both seasoned portfolio landlords and new entrants alike.<\/p>\n
\u201cThere\u2019s no question that certain regions \u2013 particularly Wales and the North East \u2013 are offering a compelling mix of affordability and rental return, while the South continues to deliver strong capital value and long-term resilience.\u201d<\/p>\n<\/p>\n
Rental yields across England and Wales remained steady at 7.5%, up slightly from 7.4% in Q1 2025.<\/p>\n
The strongest performing regions were Wales (9%), the North West (8.8%) and the North East (8.7%), all continuing to deliver high income potential relative to property values. Quarter-on-quarter, rental yields increased in four regions, most notably in Wales, which jumped 1.3%.<\/p>\n
Although four regions saw modest year-on-year declines in yield, including the North East (-1.4%) and West Midlands (-0.8%), these changes were relatively small and may reflect market readjustment following strong gains in 2023 and early 2024.<\/p>\n
More than half (54%) of all Fleet\u2019s Q2 mortgage applications came from landlords with four or more properties, and the average portfolio size now stands at 10 properties.<\/p>\n
Cox added: \u201cWhat\u2019s also clear is the so-called landlord exodus hasn\u2019t materialised \u2013 our data shows 39% of business in Q2 was for property purchase, and the average portfolio size has grown to 10 properties.<\/p>\n
\u201cThis is a sign of landlords actively reshaping and expanding their portfolios in line with evolving tenant demand.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Tight supply compared to demand is continuing to push up both yields and rents, Fleet Mortgages\u2019 rental barometer for Q2 2025 has found. Average rents across all regions rose by 2.9% over the quarter, with particularly notable increases seen in the North East (+21.8%), Wales (+7.8%) and Greater London (+6.5%). Greater London remains the highest-value […]<\/p>\n","protected":false},"author":1,"featured_media":1432,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-1431","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-second-home"],"yoast_head":"\n