Wales rental yields

Average rental yields jump to almost 7% in England and Wales

Three areas in particular have seen rental yields surge – Wales, the north west and Yorkshire and the Humber – pushing up the average for buy-to-let landlords.

The upwards trajectory for rental yields across much of the UK continued in the final quarter of 2023, according to the latest figures from Fleet Mortgages in its quarterly barometer. Buy-to-let landlords are now achieving average yields of 6.9%, up by 0.3% from the same period last year.

This is due to a range of factors, including property prices in certain locations holding their own or continuing to increase, despite external headwinds that have affected other markets due to rising mortgage rates. Rental prices have also continued to increase, due to demand outpacing supply in many areas.

Many investors have also increasingly honed in on high-yielding locations over the past couple of years, focusing on this aspect of their overall return on investment as opposed to capital appreciation.

Top rental yields by region

According to Fleet Mortgages, the north east has now been knocked off the top spot due to a small dip in the region’s average rental yields. Now, the best yields can be found in Wales, which saw a 2.2% increase between Q4 2022 and Q42023, bringing the average for the country to 8.9%.

The north west and Yorkshire followed with the next highest rental yield rises, with both gaining 1.1% on the previous year.

In other reports, Liverpool has stood out as the highest-yielding location in the UK overall, and many of Manchester’s surrounding areas also tend to bring in healthy yields due to having lower overall property prices and strong rental demand and pricing.

While the north east’s dip in yields saw it knocked off the top spot, the East Midlands and the south west also saw small declines in their average yields in the latest barometer.

Commenting on the figures, Steve Cox, chief commercial officer at Fleet Mortgages, said: “[6.9%] remains a strong rental yield figure, however in other regions – notably Wales, the North West and Yorkshire and Humberside – rental yields have jumped significantly again, reflecting no doubt a continued lack of supply compared to overall tenant demand.

“Through 2024 we might anticipate rents come off these highs a little, but it’s still likely to be the case that the number of prospective tenants wanting property far outweighs its availability.”

Landlords’ portfolios remain stable

Alongside rental yields, Fleet’s research also looks at borrowing figures for the market, as well as portfolio sizes for landlords. The Q4 barometer found that the number of investment properties owned by mortgages landlords had stayed stable for the quarter at 12.

The average loan size for mortgages on Fleet’s books fell slightly during the period, from £187,000 to £175,000, and the average rental cover at loan origination also fell from 177% on average to 170%. However, it also saw a 2% increase in the number of mortgages taken out for purchase.

While 2023 was a challenging year, particularly for those with mortgages, the situation has already begun to ease as lenders have been dropping their rates. For many landlords, increasing rental yields may also have boosted confidence and optimism for the year ahead.

However, 2024 still has a number of unknown factors, such as how the upcoming Spring Budget could impact the housing market, uncertainty over the direction of inflation, and waiting to see when the Bank of England will begin to bring down interest rates.

Steve Cox adds: “Historically, we’ve tended to see more landlords active in the sector when rates are around the 5% mark, and we’re getting there, so we would not rule out more purchasing, providing landlords can find the property they require – no easy feat in the current market.

“Overall, it has been a much more positive start to the year than we saw in the Spring and Summer of 2023, and while we are not anticipating a huge boost to buy-to-let transactions and lending activity, there is a far greater potential for it than we witnessed for most of last year.”

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:


Sign up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
Manchester property investment


Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:


+44 (0) 333 123 0320

Open from 9am-6pm GMT


+852 6699 9008

Open from 9am-6pm HKT