Editor's note: This brief was summarised by The Property AI Team from a report by Letting Agent Today. Read the original article for full details.
Buy-to-Let Yields Reach Highest Level Since 2011
Average gross buy-to-let yields have reached their highest level for more than 15 years, according to Paragon Bank. The bank's data shows the average yield from properties in its buy-to-let offer data rose to 7.22% in the third quarter of 2026.
That is the highest level since the first quarter of 2011. The figures come from Paragon's Q3 2026 Buy-to-Let Yields report.
What This Means for Letting Agents
Letting agents and landlords will welcome the rise in average gross yields, which signals improving returns on buy-to-let investments. For inventory clerks, sustained investor interest in the sector typically means continued demand for professional inventory services across tenancy changeovers.
The data suggests buy-to-let remains an attractive proposition for investors, despite the broader economic pressures that have affected the sector in recent years. Paragon Bank's offer data provides a snapshot of the yields being achieved on properties within its buy-to-let lending pipeline.
Market Context
The 7.22% average gross yield recorded in Q3 2026 is a notable increase on recent years. Yields were last at this level in the first quarter of 2011, more than 15 years ago.
For letting agents, the data may support conversations with existing and prospective landlord clients about the current strength of rental returns. Inventory clerks in markets with strong investor activity may see continued demand for their services as new tenancies are established.
The report from Paragon Bank covers properties included in the bank's buy-to-let offer data, giving an indication of the yields being achieved on buy-to-let properties during the third quarter of 2026.
Source: Letting Agent Today