Buy-to-let rental yields increase in Q1, with Wales and the North East leading regionally

15 April 2026

Gross buy-to-let yields ticked up during the first quarter of the year, with Wales and the North East leading the yield chart regionally, data from buy-to-let mortgage specialist Paragon Bank has found.

Paragon’s Q1 2026 Buy-to-Let Yields report, based on the bank’s lending data, found gross yields ended the quarter at 6.96%, up from 6.92% at the end of the fourth quarter last year.

At a regional level, Wales and the North East were the top performing locations, generating yields of 8.74% and 8.10% respectively. The North West (7.87%), East Midlands (7.58%) and Yorkshire & the Humber (7.45%) made up the top five.

Conversely, Greater London generated the lowest gross rental yields at 5.74%.

By property, HMO yields strengthened, increasing by 0.17 percentage points to 8.78%, with Multi-unit Blocks increasing 0.21 percentage points to 7.48%. Detached homes and bungalows generated the lowest yields at 4.60% and 5.10% respectively.

Louisa Sedgwick, Paragon Bank Managing Director of Mortgages, said:

“Yields have started 2026 on a positive footing, edging up slightly. This reflects the slightly flat housing market during the quarter against tenant demand that is still strong, despite easing over the past 12 months.

“HMOs, MUBs and semi-detached homes have particularly seen healthy yield increases over the period, while regionally Wales and the North East continue to generate the strongest returns. We’re seeing robust demand in student markets in Wales particularly, which is underpinning the strength of this market.”