.svg){kind=small}
New data from Paragon Bank reveals that buy-to-let (BTL) yields across England and Wales have surged to their highest level in over 14 years. In April 2025, the average rental yield reached a significant 7.11%, marking the strongest return for landlords since February 2011. This figure represents a continued upward trend from 6.94% recorded in the final quarter of 2024.
This increase in yields is primarily attributed to a combination of moderating property price growth and consistently rising rents. The robust tenant demand, coupled with an ongoing shortage of available rental homes, is driving this positive trend for investors.
Key Benefits
Russell Anderson, Commercial Director of Mortgages at Paragon, commented on these findings, stating that "these figures demonstrate the strong returns for investors in the buy to let market."
The data also highlights regional variations in yields, with Wales currently leading with the highest average returns at 8.43%. In contrast, Greater London is experiencing the lowest returns, averaging 5.78%. Among property types, Houses in Multiple Occupation (HMOs) are delivering the highest yields, reaching an average of 8.50%.
Eligibility Criteria
Paragon's analysis underscores the current strength and potential profitability for investors in the buy-to-let sector. Compare options on our HMO mortgages page.