Buy-to-let profitability has rebounded, with average rental yields matching their highest levels in a decade, the Landlord Trends report (Q2 2025) from Pegasus Insight has found.<\/p>\n
Yields average at 6.5%, while they are over 7% in the North West, North East and East Midlands.<\/p>\n
London yields are the lowest, at 6.1%.<\/p>\n
Bethan Cooke, director at Pegasus Insight, said: \u201cYields at a 10-year high are a clear signal of the enduring strength of the private rented sector.<\/p>\n
\u201cDespite the significant challenges landlords have faced over recent years \u2013 from higher borrowing costs to shifting tax rules \u2013 the fundamentals of tenant demand and income generation remain robust.<\/p>\n
\u201cThe fact that almost nine in 10 landlords are still making a profit demonstrates the sector\u2019s ability to weather economic and policy storms.<\/p>\n
\u201cAt the same time, the policy landscape is far from settled. The Renters\u2019 Rights Bill represents the most significant set of changes in a generation, and while intended to protect tenants, it is also adding to landlord uncertainty.<\/p>\n
\t <\/p>\n
\u201cOur data shows landlords remain committed, but for many the coming 12 months will be a crucial period to review portfolios, financing and business models in light of what\u2019s ahead.\u201d<\/p>\n
Profitability is also robust: 87% of landlords say they are currently making a profit, with 21% describing this as a \u2018large\u2019 profit and 66% a \u2018small\u2019 profit.<\/p>\n
Only 5% report any form of loss.<\/p>\n
The rebound comes against a backdrop of looming legislative change.<\/p>\n
The Renters\u2019 Rights Bill is expected to receive Royal Assent before the end of September, with initial measures such as the abolition of Section 21 \u2018no-fault\u2019 evictions, the shift to open-ended tenancies, annual rent increase limits, and new rights for tenants around pets and advance rent due to be implemented from early 2026.<\/p>\n
With only 14% of landlords saying they are fully aware of the details of the Bill, the uncertainty is likely to influence portfolio strategies in the months ahead.<\/p>\n","protected":false},"excerpt":{"rendered":"
Buy-to-let profitability has rebounded, with average rental yields matching their highest levels in a decade, the Landlord Trends report (Q2 2025) from Pegasus Insight has found. Yields average at 6.5%, while they are over 7% in the North West, North East and East Midlands. London yields are the lowest, at 6.1%. Bethan Cooke, director at […]<\/p>\n","protected":false},"author":1,"featured_media":3462,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[2],"tags":[],"class_list":["post-3461","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-second-home"],"yoast_head":"\n