The average rental yield across England and Wales stood at 7.5% in Q2, new research by Fleet Mortgages has shown.

The figure was up marginally from the 7.4% that the buy-to-let (BTL) lender reported in Q1.

Fleet’s latest BTL Rental Barometer for Q2, which provides a regional snapshot of rental yield trends in England and Wales, revealed that Wales had jumped into the top spot with an average quarterly yield of 9%, followed by the North West (8.8%) and North East (8.7%).

The lender suggested these regions had continued to hold an attraction for landlords due to the strength of yield achievable, as well as a combination of lower property prices and sustained demand, especially when compared to supply.

“Our latest Rental Barometer shows yields across England and Wales continue to hold firm, underlining the enduring strength of the private rental sector and landlords’ commitment to delivering the supply required by sustained tenant demand,” Fleet’s chief commercial officer, Steve Cox, said.

“While we’ve seen some modest annual dips in specific regions, overall yields remain robust, with the quarterly increase to 7.5% reflecting a strong and stable foundation for landlords seeking long-term income and capital growth.”

Fleet’s lending data also show that landlords have remained active and committed to expanding portfolios, with 39% looking to purchase – the same figure as Q1 – and 54% owning four or more properties.

The lender said attraction of the BTL sector for new landlords also remains strong, with first-time landlord applications holding steady at 14% over the quarter.

“It’s clear landlords are still very much in the market – over half of our business continues to come from those with four or more properties, and purchase demand has held steady despite wider economic pressures,” Cox added.

“It’s also pleasing to see first-time landlord activity staying consistent at 14% which suggests new entrants are still seeing long-term value in BTL.”

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