Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Average Rental Yields in England and Wales Rise to 7.8% in Q2 2026

Average rental yields across England and Wales increased to 7.8% in the second quarter of 2026, according to Fleet Mortgages' Quarterly Rental Barometer. The North East recorded the highest annual rental yields, while Yorkshire and Humberside saw the largest annual increase in average rents.

Fleet Mortgages reported that average yields across England and Wales grew by 0.3% year-on-year in Q2. The North East led the regions with a 0.5% annual increase in yields, reaching 9.2%. However, the average rent in the North East fell by 6.2% year-on-year to £844.

The North West maintained the second-highest annual rental yield at 8.8%, with no significant growth reported. Average rents in the North West rose by 1.8% to £1,188. Yorkshire and Humberside, Wales, and both the East and West Midlands all reported rental yields at or above 8%. These four regions also experienced the highest growth in annual average rents, with Yorkshire and Humberside leading with a 23.6% rise.

Wales saw a 0.9% decrease in annual yields compared to the previous year, but its average rent increased by 14.4% to £1,214. In the South West, rental yields fell by 0.5% to 6.6%. The region's average rent decreased by 4.6% quarter-on-quarter but rose by 4.4% year-on-year to £1,423. The South of England reported the lowest average rental yields overall.

Greater London experienced a 0.3% rise in yields to 6.3%, while the South East saw a 0.4% increase to 6.9%. Greater London also had the smallest annual increase in average rents, up by 1.6% to £2,364.

Fleet Mortgages' data showed that the share of applications from landlords with 6-14 properties increased from 26% in Q1 to 30% in Q2. Applications from first-time landlords made up 9% of all business in Q2, down from 11% in the previous quarter.

These trends provide letting agents and inventory clerks with insight into regional rental performance and landlord activity across the UK property market.