Buy-to-Let Yields Surge to 14-Year High in 2025: Why It’s Great News for UK Property Investors

Record-Breaking Rental Yields: What the Numbers Say

Rental yields for buy-to-let properties have hit a high not seen since 2011. According to Paragon Bank, the average rental yield reached 7.11% in April 2025, just a shade below the 7.12% recorded back in February 2011. After a string of increases in early 2025, this marks a 13-year peak—a promising indicator for anyone involved in property investment.

Strong Demand Meets Limited Supply

This upward trend is being fuelled by soaring tenant demand and a shortage of rental properties, which in turn pushes rents higher. While house price inflation has steadied, rental income continues to grow—offering a favourable balance for landlords.

Compared to the 6.94% average at the end of 2024, the jump to 7.11% represents a year-on-year increase of 40 basis points, reflecting a market that’s working in favour of investors.

Where the Highest Buy-to-Let Returns Are

Wales is leading the charge, delivering average rental yields of 8.43%—up from 8.09% at the end of 2024. Meanwhile, Greater London continues to show the lowest returns at 5.78%, though that’s still an improvement from previous quarters.

What Types of Property Offer the Best Yields?

Complex property investments such as HMOs (Houses in Multiple Occupation) continue to perform well, yielding 8.50% on average. These higher-yield options are proving particularly attractive for landlords looking to maximise returns in the current market.

What the Experts Are Saying

Russell Anderson, Commercial Director of Mortgages at Paragon Bank, had this to say:

“Despite economic uncertainty, these figures show that buy-to-let remains a resilient and profitable investment strategy for landlords—especially those investing in HMOs or regions with high demand and affordable property prices.”

What This Means for You as a UK Property Investor

If you’re considering entering or expanding your property portfolio, now is a smart time. Whether you're eyeing up HMOs or single lets in high-demand areas, the numbers point toward strong returns in 2025 and beyond.

Final Thoughts

With yields at their highest in over a decade, buy-to-let is showing real strength as an investment option. Want to explore your next property opportunity?

Visit www.regencyinvest.co.uk to discover our latest buy-to-let investments.

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