Over the past five years, average gross rental yields across England and Wales have consistently increased, reaching a peak of 7.2% in February 2025, compared to 6% in 2020. This upward trend is evident across all regions, with the North West experiencing the most significant rise from 6.1% to 7.8%. The primary driver behind yield growth is rental inflation surpassing house price inflation, as average rents have surged by 44% over five years, whereas property sales prices have risen by 20%. Flats now yield an average of 7.4%, a sharp increase from 5.4% in 2020, while houses yield 5.7%, up from 5.1%.
Despite these high gross rental yields, increasing regulatory pressures have posed challenges for landlords. Nevertheless, 71% of landlords intend to maintain their property portfolios over the next year, an increase from 66%, while 9% plan to expand. These figures are based on data from Dataloft by PriceHubble and the Land Registry, with calculations derived from a rolling 12-month basis of average sales and rental prices on a per-square-foot basis.
