Report Highlights Strong Rental Yields Growth Across UK Property

As we step into 2025, the UK’s buy-to-let market is looking increasingly promising for investors. Fleet Mortgages' latest Rental Barometer reveals impressive rental yield growth across the UK regions, making property investment a compelling option for both seasoned landlords and first-time investors. Here's what you need to know.

Rental Yields by Region: Positive Growth Trends

The report highlights the annual change in rental yields across key UK regions for Q4 2024 compared to Q4 2023.

The North East leads the charge with an impressive 9.3% average rental yield, while Yorkshire and Humberside and the North West follow closely with 8.6% and 8.3%, respectively. These figures reinforce the strong potential for investment in the northern regions, where affordability and high demand create an ideal environment for buy-to-let ventures.

Market Highlights: Why 2025 Is Poised for Growth

Fleet Mortgages' data points to several key trends shaping the buy-to-let market:

• Increased Applications: Landlords with portfolios of 6 to 14 properties accounted for 34% of applications in Q4 2024, up from 30% in Q3. First-time landlords also grew from 10% to 11% during the same period.
• Improved Affordability: Falling mortgage rates, with two-year fixed rates down to 4.71% and five-year fixed rates at 5.11%, are making buy-to-let investments more accessible.
• Higher Average Rents: Monthly rents in Greater London reached £2,056, while the North East remains the most affordable region with an average rent of £706, creating opportunities for investors targeting diverse tenant profiles.
• Robust Lending Outlook: Industry forecasts, including those from IMLA, predict a 10% increase in gross buy-to-let lending for 2024, with further growth anticipated in 2025 and beyond.

Expert Insight: Keith Egan, Managing Director at Magnate Assets

“The data from Fleet Mortgages underscores the resilience and profitability of the UK buy-to-let market, especially in regional hotspots like the North East and Yorkshire. For overseas investors, the UK remains a standout destination, offering stable returns and opportunities for portfolio diversification.

“Despite challenges like higher stamp duty surcharges, the consistent demand for rental properties and improving mortgage affordability create an environment where investors can thrive. At Magnate Assets, we’re committed to helping investors navigate this landscape with confidence and capitalize on the robust growth opportunities ahead.”

Why Invest in UK Buy-to-Let in 2025?

1. Strong Yields: Average rental yields across England and Wales reached 7.4% in Q4 2024, offering a solid return on investment.
2. Affordable Finance: Falling mortgage rates and competitive lending products provide enhanced affordability.
3. Rising Demand: With tenant demand outstripping supply, rental properties continue to attract steady income and capital growth.
4. Regional Opportunities: Northern regions offer higher yields and affordable entry points compared to London and the South East.

What’s Next for Investors?

The UK buy-to-let market is poised for sustained growth in 2025, driven by rising rental yields, improving affordability, and strong tenant demand. Whether you're an experienced investor or exploring the market for the first time, the data indicates that now is an opportune time to invest.

Contact Magnate Assets to learn more about how we can help you identify high-potential opportunities and maximize your returns in the UK property market.