UK property investors are seeing the strongest average rental yields in over 14 years, according to newly released data from Paragon Bank. As of April 2025, average yields across buy-to-let properties hit 7.11%, marking the highest point since February 2011.
The surge in rental yields is driven by a combination of sustained tenant demand and a limited supply of rental properties, against a backdrop of stabilising property prices. It continues a consistent upward trend from the market low of 4.91% in May 2017.
Paragon Bank's lending data reveals that:
According to Russell Anderson, Commercial Director of Mortgages at Paragon Bank:
"These figures offer tangible evidence that buy-to-let continues to offer strong returns for investors, especially those who focus on high-return property types like HMOs or invest in high-demand, lower-cost regions."
Some regions stand out for outperforming the national average, particularly Wales and areas in Northern England. In contrast, landlords in Greater London continue to see the lowest rental yields, despite a slight uptick.
These figures highlight the value proposition in regional UK markets, particularly for overseas and expat investors seeking strong returns from rental income.
For investors at home and abroad, these figures underline the long-term strength and resilience of the UK rental market. With average yields now at a 14-year high, the buy-to-let sector continues to offer:
For international investors, particularly from the Middle East and Asia, the opportunity to access double-digit yielding assets in regions like Wales, Yorkshire, and the North of England adds further weight to the UK’s appeal.