Average gross yields have steadily climbed over the last five years, reaching a high of 7.2% in February 2025, up from 6% in 2020. Yields have risen in all regions across England and Wales, with the North West experiencing the biggest jump, rising from 6.1% to 7.8%.
Growth in yields is largely due to rental inflation outstripping house price inflation. Average rents have increased 44% in 5 years, while sales prices have risen 20%. Flats have an average gross yield of 7.4% (up from 5.4% in 2020), while houses are lower at 5.7% (up from 5.1% in 2020).
Despite high gross yields, increasing legislation has put a strain on many landlords. However, 71% plan to keep their lettings portfolio the same over the next year (up from 66% previously), and 9% plan to increase it. Source: Dataloft by PriceHubble, Land Registry. Average gross yields across England and Wales on a rolling 12-month basis calculated from average sales and rental prices on a price per square foot basis, Property Academy Landlord Survey 2024, rental and sales growth per sq ft.
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