Rental yields have increased across most of England and Wales over the past year, with the average return climbing to 7.9% in Q3 2026, according to new figures from Fleet Mortgages. This is an increase from 7.5% recorded a year earlier.
Eight out of 10 regions saw rental yields rise. Yorkshire and Humberside reported the highest average yield at 9.3%, up from 8.2% in Q3 2025. The North East followed with 9.2%, while the East Midlands saw a notable increase from 7.5% to 8.4%. Greater London remained the lowest-yielding region at 6.4%, though this was an increase from 5.9% a year prior.
Despite rising yields, the figures indicate that higher returns do not always lead to increased investment activity. Wales, for example, had the highest proportion of purchase applications at 46% during Q3, even as its average yields fell from 8.1% in Q2 to 7.5% in Q3. Conversely, the South West saw purchase activity increase significantly as yields recovered to 7.1%.
The data also suggests a growing concentration of activity among professional landlords. The average landlord applying to Fleet Mortgages owned 18 investment properties in Q3 2026, up from 12 a year earlier. Landlords with portfolios of 15 or more properties accounted for 30% of applications.