For investors in the UK property market, there's good news on the horizon. Despite some of the challenges faced by the property sector over the last year, the buy-to-let market remains robust, with rents continuing to rise and yields staying strong. According to the latest figures from Fleet Mortgages' Q2 2025 Rental Barometer, landlords across England and Wales are still reaping the benefits of solid rental growth and consistent yields, thanks to strong tenant demand and a constrained supply of rental properties.
Over the last quarter, average rents across England and Wales have increased by 2.9%, with some regions seeing robust growth. For example, the North East saw a dramatic rise in rents, with a 21.8% increase, while Wales (up 7.8%) and Greater London (up 6.5%) also experienced notable growth. These increases highlight the continued strength of tenant demand, especially in areas where property supply is tight.
In terms of rent values, Greater London remains the most expensive rental market in the country, with average monthly rents now reaching £2,328 per calendar month (pcm). This is closely followed by East Anglia at £1,640 pcm and the South East at £1,520 pcm.
However, it's not all about high costs. In some regions, rent remains more affordable. The North East has the most affordable average rent at £900 pcm, followed by Wales at £1,061 pcm and Yorkshire & Humberside at £861 pcm.
These figures suggest that while certain areas of the UK remain expensive, there are still opportunities for landlords to invest in more affordable regions with strong rental growth potential.
When it comes to rental yields, the market continues to perform strongly. Fleet Mortgages reports that rental yields across England and Wales held steady at 7.5% in Q2 2025, with a slight increase from the 7.4% recorded in Q1 2025. The standout regions for rental yields were Wales (with an impressive 9% yield), the North West (8.8%), and the North East (8.7%).
What’s particularly interesting is the quarter-on-quarter growth in rental yields in several regions, notably Wales, which saw a 1.3% increase. This indicates that certain areas remain excellent options for investors seeking both high returns and long-term growth.
While four regions saw modest declines in rental yields year-on-year, including the North East (down 1.4%) and the West Midlands (down 0.8%), these drops were minimal. According to Fleet Mortgages, this could reflect a market correction after the rapid gains seen in 2023 and early 2024, rather than a sign of an impending downturn.
The demand for buy-to-let mortgages also remains high, with 54% of Fleet Mortgages' Q2 applications coming from landlords with four or more properties in their portfolio. The average portfolio size for landlords now stands at 10 properties, indicating that many are actively expanding their investments rather than scaling back.
Interestingly, first-time landlords account for 14% of the mortgage applications, suggesting that despite the challenges of the property market, new investors are still eager to enter the buy-to-let space.
One of the most significant trends seen in Q2 2025 is the continued dominance of limited company borrowing. A full 81% of Fleet's mortgage applications came from landlords using a corporate structure, which highlights the growing preference for this model due to tax advantages and the ability to scale portfolios more effectively.
So, what does all this mean for property investors? Fleet Mortgages' data reinforces the view that the buy-to-let sector remains a resilient and attractive option for investors looking for long-term growth. Rents are rising, yields are holding steady, and tenant demand remains strong. What's more, the landlord exodus that some had predicted has not materialised. Fleet’s data shows that 39% of Q2 business was for property purchases, and landlords continue to expand their portfolios in response to evolving tenant demand.
As the market continues to adjust, particularly in high-demand areas such as Wales and the North East, landlords who understand where to invest can continue to enjoy strong returns. Whether you’re an experienced investor or a first-time landlord, now is still a great time to capitalise on the opportunities in the buy-to-let market.
For those looking to invest in property, regions such as Wales and the North East remain particularly attractive due to their affordability and strong rental yields. Meanwhile, the South East and Greater London continue to offer solid returns, albeit with higher entry costs.
As the market continues to evolve, investors who understand the trends and target the right regions will be well-positioned to achieve long-term success. Whether you're looking for high rental yields, capital growth, or the stability of established markets, the UK’s buy-to-let market offers something for every investor.
At Magnate Assets, we keep our finger on the pulse of the UK property market to ensure our clients make informed, profitable investment decisions. If you’re considering entering the buy-to-let market or expanding your portfolio, get in touch with us today to explore the best opportunities available.
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