Regional differences are increasingly influencing how UK landlords manage and restructure their portfolios, with some areas offering stronger rental yields but also greater tenant and operational risks, a new report has found.

According to the latest Pegasus Insight Landlord Trends report produced with Foundation, the buy-to-let sector remained resilient in Q2 2026, with landlords reporting an estimated average portfolio value of £1.8m, gross rental income of £12,007 per property and rental yields of 6.4%.

Some 86% of landlords said their lettings businesses were profitable, while only 5% reported making a loss. However, portfolio activity remained focused on selling rather than buying, with 22% of landlords having sold a property over the past year compared with 6% who purchased one.

London continued to deliver the highest asset values and rental income, with Central London landlords reporting average portfolios worth £3.7m and rental income of £17,989 per property. However, yields averaged 5.3%, below the UK average.

By contrast, the East of England and East Midlands recorded the highest yields at 7.3%, followed by Yorkshire and the Humber at 6.8% and the North East at 6.6%.

Profitability was strongest in the East Midlands, where 92% of landlords reported making a profit, followed by the West Midlands at 90%, and the East of England and South West at 89%. However, higher yields did not always translate into better overall performance.

In the North East, 55% of landlords reported void periods and 42% experienced rental arrears, compared with a UK average of 26% for arrears.

Landlords continued to reshape their portfolios, with 30% in the North West selling properties over the past year, followed by 29% in Yorkshire and the Humber and 25% in the East Midlands. The North East recorded the strongest purchasing activity, with 18% of landlords acquiring a property.

Grant Hendry, director of sales at Foundation, said: "The latest research reinforces the fact there is no such thing as a typical buy to let market. While headline figures show a sector that remains profitable and resilient, the regional data reveals very different opportunities and challenges depending on where landlords are investing. For brokers, understanding these local market dynamics has never been more important."

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