Editor's note: This brief was summarised by The Property AI Team from a report by Mortgage Solutions. Read the original article for full details.
Scotland, West Midlands and Yorkshire Drive Q2 Landlord Yield Improvement
Landlord gross rental yields strengthened in the second quarter of 2026, according to data from buy-to-let mortgage specialist Paragon Bank. The main drivers of this growth were Scotland, the West Midlands, and Yorkshire and the Humber.
Yields have been rising since the end of the Covid lockdowns, increasing from 5.84% in 2021. In Q2 2026, Scotland recorded the strongest growth in yield performance, rising by 53 percentage points to 7.97%. The West Midlands saw a 24 percentage point increase to 7.24%, while Yorkshire and the Humber rose by 21 percentage points to 7.58%.
Scotland’s sharp rise moved it into joint second place nationally alongside the North East, both now yielding 7.97%. Wales retained its position as the UK’s strongest yielding region at 8.87%. In contrast, Greater London experienced the sharpest decline of any region, with yields falling 16 percentage points to 5.58% over the quarter. Along with the South East, at 6.48%, London remained the lowest yielding region in the UK.
By property type, houses in multiple occupation (HMOs) remained the highest yielding investment, delivering 8.9%, up 14 percentage points on the previous quarter. Multi-unit blocks (MUBs) followed at 7.18%, with flats at 6.45% and terraced housing at 6.31% also outperforming other property types.
These trends are relevant for UK letting agents and inventory clerks monitoring regional and property-type performance, as they reflect ongoing changes in rental yields and demand for specialist rental accommodation.
Source: Mortgage Solutions