The total average yield for England and Wales is 7.4%, showing an annual increase of 0.6% on the same quarter in 2023 and a 0.2% rise compared to the previous quarter.

The North East continues to lead the average rental yield table at 9.3% with Yorkshire & Humberside moving up to second place with 8.6%.

With almost all regions still in positive territory, and with mortgage costs having fallen over the last 12-18 months, the yields available made property investment an attractive option for many established and new landlords.

Applications received by Fleet from those landlords with six to 14 buy-to-let properties had increased from 30% in Q3 to 34% in Q4, while there was a continuation in the growth of applications from first-time landlords, up from 10% to 11%, over the same period.

Despite Stamp Duty Land Tax changes announced during this year’s Budget, Fleet continues to observe high demand (44%) from landlords looking to add properties to their rental portfolios. A typical landlord now holds 12 properties within their rental portfolio.

Steve Cox, Chief Commercial Officer at Fleet Mortgages:

There is certainly a greater degree of positivity around the buy-to-let market now than at this time last year, even with the Budget decision to increase stamp duty surcharges for landlord purchasers.

In our view, all of this points to a more positive market for buy-to-let in 2025, especially if we see rates fall steadily, as anticipated, while at the same time, tenant demand remains strong, while the supply of properties in the private rental sector is still not enough to meet this demand.

Sources

• Fleet Mortgages
• Property Soup

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