The total average yield for rental properties across England and Wales reached 7.4% in Q4 2024, new data published by Fleet Mortgages has indicated.

This represented an annual increase of 0.6% on Q4 in 2023, and 0.2% up on the previous quarter.

Fleet’s data for the buy-to-let (BTL) market covers all areas of England and Wales in which it lends and highlights the rental yield changes that have occurred in each of those regions.

The BTL specialist lender said that rental yields had remained almost universally positive, with only one region, the West Midlands, showing a year-on-year fall. However, compared to the previous quarter, there were three regions – Greater London, the North East and the West Midlands – that saw reducing yields.

Fleet’s figures suggested that the North East has continued to lead the average rental yield table at 9.3%, with Yorkshire and Humberside moving up to second place (8.6%), above the North West (8.3%).

Having dropped down the list of regions in Q3 2024, Wales moved back up in Q4 with a 0.5% year-on-year increase, delivering a quarterly rental yield of 8.2%.

Averaged out, Fleet stated that rental yields across England and Wales were “broadly static” compared to a year ago.

“There is certainly a greater degree of positivity around the BTL market now than at this time last year, even with the Budget decision to increase stamp duty surcharges for landlord purchasers,” chief commercial officer at Fleet, Steve Cox, commented.

“Many landlords were waiting for the Budget before making decisions, but even with the stamp duty increase, at least they now have certainty about the future, can plan accordingly, and as mentioned, the financial position is positive which will allow more landlords to act and to add to portfolios where appropriate.

“In our view, all of this points to a more positive market for BTL in 2025, especially if we see rates fall steadily, as anticipated, while at the same time, tenant demand remains strong.”

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