--- title: "UK Buy-to-Let Shows Record Strength: 7.02% Yields and Lowest Landlord Arrears" description: Paragon Bank data reveals a fall of 14% of UK landlords who experienced rent arrears in the past year, the lowest level on record alongside 86% profitability and average gross yields of 7.02% in Q2 2026. image: https://blog.magnateassets.com/hubfs/UK%20Buy-to-Let%20Shows%20Record%20Strength_%207.02%25%20Yields%20and%20Lowest%20Landlord%20Arrears.png --- [![logo](https://blog.magnateassets.com/hs-fs/hubfs/logo.png?width=216&height=50&name=logo.png "logo")](https://magnateassets.com/) × - [Properties](https://www.magnateassets.com/en/searchresult) - [Off-Plan](https://www.magnateassets.com/en/searchresult?proType=Off-Plan) - [Completed](https://www.magnateassets.com/en/searchresult?proType=Completed) - [High Yield Investing](https://www.magnateassets.com/en/high-yield-investing) - [HMO (Houses in Multiple Occupation)](https://www.magnateassets.com/en/property-hmo) - [Student Accommodations](https://www.magnateassets.com/en/property-student-accommodations) - [Property Sourcing](https://www.magnateassets.com/en/property-sourcing) - [Property Concierge](https://www.magnateassets.com/en/property-concierge) - [Land Options](https://www.magnateassets.com/en/searchresult?proFor=Local&proType=Land%20Options&country=UK) - [Property Bonds (Promissory Notes)](https://www.magnateassets.com/en/property-bonds) - [Buildings](https://www.magnateassets.com/en/searchresult?proType=Buildings) - [Build-to-Rent Projects](https://www.magnateassets.com/en/build-to-rent-projects) - [Equity Investments](https://www.magnateassets.com/en/equity-investments) - [Funding Partnerships](https://www.magnateassets.com/en/funding-partnerships) - [Locations](https://magnateassets.com/en/location) - Resources - [Blog](https://blog.magnateassets.com) - [Podcast/Webinars](https://www.magnateassets.com/en/video-gallery) - [Guides](https://info.magnateassets.com/guides) - Finance, Tax & Legal - [Mortgage Calculator](https://magnateassets.com/en/mortgage-calculator) - [Mortgages & Finance](https://www.magnateassets.com/en/mortgages-and-finance) - [Property Transfer & Legal](https://www.magnateassets.com/en/property-transfer-and-legal) - [Tax Planning and Set up](https://www.magnateassets.com/en/tax-planning-and-set-up) - [UK Immigration Information](https://www.magnateassets.com/en/uk-immigration-information) - [Managing Your Properties](https://www.magnateassets.com/en/managing-your-properties) - [Furniture Packs](https://www.magnateassets.com/en/furniture-packs) - About Us - [Meet the Team](https://www.magnateassets.com/en/meet-the-team) - [Contact Us](https://magnateassets.com/en/contact-us) - [UK Property Investment](https://www.magnateassets.com/en/for-uk-property-investment) - [Developer Partnerships](https://www.magnateassets.com/en/developer-partnerships) # UK Buy-to-Let Shows Record Strength: 7.02% Yields and Lowest Landlord Arrears Published by Keith Egan on Aug 24, 2026 Quick Summary The UK buy-to-let sector is showing strong income resilience, with Paragon Bank data reporting average gross yields of 7.02%, improved landlord profitability, and the lowest rent arrears level on record. • **Buy-to-let yields remain strong:** Average gross rental yields reached 7.02% in Q2 2026, reinforcing the income case for UK rental property investment • **Landlord arrears have fallen:** The share of landlords reporting rent arrears over the previous 12 months fell by 14%, reaching the lowest level recorded in Paragon Bank’s Landlord Trends survey • **Profitability is improving:** 86% of landlords said they were making a profit from lettings activity, up two percentage points from the previous quarter • **BTL credit performance remains resilient:** Buy-to-let arrears have remained lower than owner-occupier arrears in 25 of the past 26 years • **Professional investors gain confidence:** Reliable rental income, strong yields, and improved portfolio performance support continued allocation to well-managed UK buy-to-let assets New data from Paragon Bank confirms the structural resilience of the [UK buy-to-let sector](https://blog.magnateassets.com/uk-buy-to-let-sector-demonstrates-structural-strength-amid-market-transition). In the second quarter of 2026, average gross rental yields reached 7.02%. At the same time, there was a fall of 14% in landlords who reported experiencing rent arrears over the previous 12 months, the lowest level recorded in the bank’s long-running Landlord Trends survey. Profitability also improved. Some 86% of landlords stated they were making a profit from their lettings activity, up two percentage points on the prior quarter. The findings are consistent with the sector’s long-term credit performance. Buy-to-let arrears have remained lower than those in the owner-occupier market in 25 of the past 26 years. Lisa Steele, Mortgage Lending Director at Paragon Bank, emphasised that the majority of tenancies continue to operate effectively. She noted that reliable rental income and profitable operations remain the typical experience for landlords, even amid wider economic and regulatory pressures. Landlord sentiment reflects this distinction. While overall confidence remains measured, respondents expressed greater assurance in the performance of their own portfolios and rental yields than in external factors such as the wider economy or future capital values. The data provide clear evidence that income reliability and profitability are enduring features of the UK buy-to-let sector. For professional investors, these metrics reinforce the case for continued allocation to well-managed rental assets.   Topics: [Insider](https://blog.magnateassets.com/tag/insider), [London Property](https://blog.magnateassets.com/tag/london-property), [UK Property](https://blog.magnateassets.com/tag/uk-property), [Real Estate Market](https://blog.magnateassets.com/tag/real-estate-market), [Market Trends](https://blog.magnateassets.com/tag/market-trends), [Rents](https://blog.magnateassets.com/tag/rents), [Demand](https://blog.magnateassets.com/tag/demand), [Yield](https://blog.magnateassets.com/tag/yield) ![Keith Egan](https://blog.magnateassets.com/hubfs/image.png) Written by [Connect on LinkedIn ↗](https://www.linkedin.com/in/keith-egan-a4585613a/) [Keith Egan](https://blog.magnateassets.com/author/keith-egan) Keith Egan has spent 30+ years in senior real estate roles across the UK, Dubai and the MENA region. As Director and Co-Founder of Magnate Group, he leads Magnate Assets focused on UK residential investment, lead generation and digital marketing and the Magnate Investments Division, Magnate's development finance and structured investment arm. Keith specialises in connecting landowners, developers and investors with regulated, technology-driven funding structures and fractional ownership solutions, bridging institutional-grade UK real estate with a wider pool of domestic and international capital. - #### Share: - [![](https://f.hubspotusercontent10.net/hubfs/445465/icon/facebook.svg)](http://www.facebook.com/share.php?u=https://blog.magnateassets.com/uk-buy-to-let-shows-record-strength-7.02-yields-and-lowest-landlord-arrears) - [![](https://f.hubspotusercontent10.net/hubfs/445465/icon/twitter-sign.svg)](https://twitter.com/share?text=UK%20Buy-to-Let%20Shows%20Record%20Strength:%207.02%%20Yields%20and%20Lowest%20Landlord%20Arrears&url=https://blog.magnateassets.com/uk-buy-to-let-shows-record-strength-7.02-yields-and-lowest-landlord-arrears&hashtags=weareawesome&via=bluleadz) - [![](https://f.hubspotusercontent10.net/hubfs/445465/icon/linkedin.svg)](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.magnateassets.com/uk-buy-to-let-shows-record-strength-7.02-yields-and-lowest-landlord-arrears) [Back to Blog](https://blog.magnateassets.com) ### Popular Blogs \[Insider, London Property, UK Property, Real Estate Market, Market Trends, Rents, Demand, Yield\] - [![Why Overseas Investors Are Turning to UK Property](https://blog.magnateassets.com/hs-fs/hubfs/Email%20(25).jpg?length=100&name=Email%20(25).jpg)](https://blog.magnateassets.com/rising-foreign-ownership-why-overseas-investors-are-turning-to-uk-property) [Rising Foreign Ownership: Why Overseas Investors Are Turning to UK Property](https://blog.magnateassets.com/rising-foreign-ownership-why-overseas-investors-are-turning-to-uk-property) - [![London’s Top Expensive Postcodes](https://blog.magnateassets.com/hs-fs/hubfs/Londons%20Most%20Expensive%20Residential%20Postcodes.png?length=100&name=Londons%20Most%20Expensive%20Residential%20Postcodes.png)](https://blog.magnateassets.com/top-expensive-postcodes-london) [London's Most Expensive Residential Postcodes: Where Are They?](https://blog.magnateassets.com/top-expensive-postcodes-london) - [![](https://blog.magnateassets.com/hs-fs/hubfs/Email%20(50).png?length=100&name=Email%20(50).png)](https://blog.magnateassets.com/2025-report-gulf-investors-own-the-most-london-real-estate) [2025 Report: Gulf Investors Own the Most London Real Estate](https://blog.magnateassets.com/2025-report-gulf-investors-own-the-most-london-real-estate) - [![UK Student Accommodation](https://blog.magnateassets.com/hs-fs/hubfs/Email%20(28).png?length=100&name=Email%20(28).png)](https://blog.magnateassets.com/uk-student-accommodation-investment-uk) [UK Student Accommodation Booms as 2025 Investment Surges](https://blog.magnateassets.com/uk-student-accommodation-investment-uk) - [![](https://blog.magnateassets.com/hs-fs/hubfs/Email%20(61).png?length=100&name=Email%20(61).png)](https://blog.magnateassets.com/uk-property-market-2026-the-big-shift-begins-and-the-smart-money-is-moving-north) [UK Property Market 2026: The Big Shift Begins — And the Smart Money Is Moving North](https://blog.magnateassets.com/uk-property-market-2026-the-big-shift-begins-and-the-smart-money-is-moving-north) - [![](https://blog.magnateassets.com/hs-fs/hubfs/Email%20(45).png?length=100&name=Email%20(45).png)](https://blog.magnateassets.com/uk-house-price-growth-2015-2025-what-overseas-investors-should-know) [UK House Price Growth 2015–2025: What Overseas Investors Should Know](https://blog.magnateassets.com/uk-house-price-growth-2015-2025-what-overseas-investors-should-know) - [![](https://blog.magnateassets.com/hs-fs/hubfs/Email%20(23).jpg?length=100&name=Email%20(23).jpg)](https://blog.magnateassets.com/interest-rates-could-drop-to-2.5-by-2027-what-it-means-for-uk-property-investors) [Interest Rates Could Drop to 2.5% by 2027: What It Means for UK Property Investors](https://blog.magnateassets.com/interest-rates-could-drop-to-2.5-by-2027-what-it-means-for-uk-property-investors) - [![](https://blog.magnateassets.com/hs-fs/hubfs/Email%20(49).png?length=100&name=Email%20(49).png)](https://blog.magnateassets.com/uk-real-estate-outlook-to-2030-resilience-yields-and-long-term-growth) [UK Real Estate Outlook to 2030: Resilience, Yields, and Long-Term Growth](https://blog.magnateassets.com/uk-real-estate-outlook-to-2030-resilience-yields-and-long-term-growth) - [![UK Rental Market Set for Record Highs in 2026](https://blog.magnateassets.com/hs-fs/hubfs/Email%20(62).png?length=100&name=Email%20(62).png)](https://blog.magnateassets.com/uk-rental-market-set-for-record-highs-in-2026) [UK Rental Market Set for Record Highs in 2026](https://blog.magnateassets.com/uk-rental-market-set-for-record-highs-in-2026) - [![Middle East Buyers](https://blog.magnateassets.com/hs-fs/hubfs/Email%20(24).png?length=100&name=Email%20(24).png)](https://blog.magnateassets.com/middle-east-buyers-london-prime-property-sales) [Middle Eastern Property Buyers Powering Growth in London’s Prime Real Estate Market](https://blog.magnateassets.com/middle-east-buyers-london-prime-property-sales) [Show all Popular Posts](https://blog.magnateassets.com) ### Blog Subscription ## Related Articles ### ![Magnate Assets](https://blog.magnateassets.com/hubfs/logo.png) Magnate Assets is an independent real estate portal that provides investors with comprehensive information on UK property investments. We pride ourselves on saving our investors' precious time by streamlining the process of searching for suitable investment properties right at their fingertips. **Address** 378 Walsall Road, Perry Barr, Birmingham, England, B42 2LX Registered in England and Wales Company No. 16073587   Follow us: ### Finance, Tax & Legal - [Mortgage Calculator](https://www.magnateassets.com/en/mortgage-calculator) - [Mortgages & Finance](https://www.magnateassets.com/en/mortgages-and-finance) - [Property Transfer & Legal](https://www.magnateassets.com/en/property-transfer-and-legal) - [Tax Planning and Set up](https://www.magnateassets.com/en/tax-planning-and-set-up) - [UK Immigration Information](https://www.magnateassets.com/en/uk-immigration-information) - [Managing Your Properties](https://www.magnateassets.com/en/managing-your-properties) - [Currency Exchange](https://www.magnateassets.com/en/currency-exchange) - [Furniture Packs](https://www.magnateassets.com/en/furniture-packs) ### Properties - [Off-Plan Properties](https://www.magnateassets.com/en/searchresult?proType=Off-Plan) - [Completed Properties](https://www.magnateassets.com/en/searchresult?proType=Completed) - [High Yield Investing](https://www.magnateassets.com/en/high-yield-investing) - [Property Sourcing](https://www.magnateassets.com/en/property-sourcing) - [Property Bonds](https://www.magnateassets.com/en/property-bonds) - [(Promissory Notes)](https://www.magnateassets.com/en/property-bonds) - [Buildings](https://www.magnateassets.com/en/searchresult?proType=Buildings) - [Build-to-Rent Projects](https://www.magnateassets.com/en/build-to-rent-projects) - [Equity Investments](https://www.magnateassets.com/en/equity-investments) - [Funding Partnerships](https://www.magnateassets.com/en/funding-partnerships) ### General - [Locations](https://www.magnateassets.com/en/location) - [Developer Parterships](https://www.magnateassets.com/en/developer-partnerships) - [Blog](https://blog.magnateassets.com) - [Podcast/Webinars](https://www.magnateassets.com/en/video-gallery) - [Guides](https://info.magnateassets.com/guides) - [Meet The Team](https://www.magnateassets.com/en/meet-the-team) - [UK Property Investment](https://www.magnateassets.com/en/for-uk-property-investment) - [Contact](https://magnateassets.com/en/contact-us) - [FAQ](https://magnateassets.com/en/faq) (C) 2026 Magnate Assets. All Rights Reserved. - [Terms & Conditions](https://magnateassets.com/en/terms-and-conditions) - [Privacy Policy](https://magnateassets.com/en/privacy-policy) [![New call-to-action](https://hubspot-no-cache-eu1-prod.s3.amazonaws.com/cta/default/25021401/23d96098-84e1-4a25-b619-bc4873af417d.png)](https://hubspot-cta-redirect-eu1-prod.s3.amazonaws.com/cta/redirect/25021401/23d96098-84e1-4a25-b619-bc4873af417d)