Average rental yields in the UK have reached 7.9%, whilst landlords now hold an average of 18 properties in their portfolios, according to new research from Fleet Mortgages covering the third quarter of 2026.
The data, which analysed lending activity between July and September, shows yields increased by 0.4 percentage points compared to 7.5% in the same quarter of 2025.
Regional performance
Yorkshire and Humberside recorded the highest yields at 9.3%, up from 8.2% a year earlier and 8.7% in the previous quarter. The North East followed at 9.2%, whilst the North West, East Midlands and West Midlands all delivered yields exceeding 8%.
Only two of the ten regions surveyed recorded annual declines, with the North West falling to 8.3% and Wales dropping to 7.5%.
Greater London remained the lowest-yielding region at 6.4%, though it continued to command the highest average monthly rent at £2,597. The North East recorded the lowest average rent at £792 per month.
Portfolio expansion
The average number of investment properties held by Fleet Mortgages borrowers increased from 16 in the second quarter to 18 in the third quarter of 2026. Landlords with 15 or more properties accounted for 30% of applications between July and September, up from 26% in the previous quarter.
A total of 66% of mortgage applicants owned four or more properties. Landlords with between one and three properties decreased from 29% to 24%, whilst first-time landlord applications edged up from 9% to 10%.
Average rental cover fell from 144% to 132%, reflecting affordability pressures from higher mortgage rates. Limited company borrowing continued to dominate at 71% of applications, down from 78% in the previous quarter.
Regulatory environment
The figures emerge as landlords navigate ongoing regulatory changes, with the first phase of the Renters’ Rights Act now implemented. The property registration service is scheduled to roll out in the West Midlands from 15th December before expanding across England in 2027.
Steve Cox, Chief Commercial Officer of Fleet Mortgages, said: “Despite everything the sector has dealt with during 2026, experienced landlords are continuing to invest and new landlords are still entering the market.”
The data suggests that whilst mortgage affordability pressures have affected rental cover ratios, professional landlords with larger portfolios continue to expand their holdings in regions offering higher yields outside the capital.
