New data from Paragon Bank’s Q4 2025 Buy-to-Let Yields Report confirms a key trend for UK property investors: UK rental yields have strengthened over the past year, with certain property types and regions standing out as especially attractive.
For investors seeking income-producing assets with long-term potential, buy-to-let apartments UK-wide are proving to be among the most effective strategies for consistent returns.
Rental Yields by Property Type – 2025 Highlights
Apartments recorded a strong performance in 2025, achieving an average gross rental yield of 6.33%, an increase of 0.24 percentage points (pp) compared to 2024. Terraced homes followed closely at 6.28%, up 0.23pp over the same period. This reinforces the position of buy-to-let apartments in the UK as a reliable option for income-focused investors.
Houses in Multiple Occupation (HMOs) continued to offer the highest overall yields at 8.61%, with Multi-Unit Blocks (MUBs) also performing well at 7.32%.
|
Property Type |
Q4 2025 Yield |
+/- vs Q4 2024 |
|---|---|---|
|
House in Multiple Occupation (HMO) |
8.61% |
+0.20pp |
|
Multi-Unit Block (MUB) |
7.32% |
+0.02pp |
|
Apartment |
6.33% |
+0.24pp |
|
Terraced Home |
6.28% |
+0.23pp |
|
Semi-Detached Home |
5.45% |
-0.11pp |
|
Detached Home |
4.54% |
-0.07pp |
This data reinforces a clear message for landlords and new investors: smaller unit types in high-demand areas continue to support high-yield UK property investment strategies when located in strong rental markets.
Regional Yield Performance: Wales and the North East Lead
In terms of geography, Wales and the North East topped the charts for yield performance in Q4 2025.
Wales posted the highest average yield at 8.83%, up 0.74pp
North East followed at 8.20%, up 0.38pp
Greater London, while typically a lower-yield region due to higher property prices, still showed yield growth of 0.30pp, reaching 5.78%
|
Region |
Q4 2025 Yield |
+/- vs Q4 2024 |
|
Wales |
8.83% |
+0.74pp |
|
North East |
8.20% |
+0.38pp |
|
North West |
7.80% |
-0.05pp |
|
East Midlands |
7.69% |
+0.15pp |
|
Yorkshire & Humber |
7.68% |
-0.03pp |
|
Greater London |
5.78% |
+0.30pp |
What’s Driving UK Rental Growth?
Louisa Sedgwick, Managing Director of Mortgages at Paragon Bank, explains:
“Yields have performed strongly since summer 2022, when house price growth began to slow and rental inflation accelerated due to the imbalance between supply and demand. While we saw this momentum ease last year as the market normalised, we expect yields to remain stable throughout this year.”
This reflects what many investors are seeing on the ground: rental demand continues to outstrip available supply, especially in high-employment urban centres and regional growth hubs.
What It Means for UK Property Investors
For UK-based and international investors alike, these findings highlight several opportunities:
For those building or expanding portfolios, professionally managed buy-to-let apartments in the UK remain a practical entry point with predictable income potential.
Looking for a Strong Yield Investment?
At Magnate Assets, we help investors access carefully selected buy-to-let apartments in the UK, in regional cities such as Manchester, Liverpool, and Birmingham, as well as value-driven commuter areas and prime London zones.
Our curated property offerings include off-plan and completed apartments, selected for yield potential, location demand, and long-term performance.
Explore current opportunities or speak with our Investment Specialists to see how high-yield UK property investment can support your income and capital goals in 2026.