Buy-to-Let Yields Reach Record Highs

The buy-to-let market is buzzing with excitement as rental yields reach their highest point since February 2011.

According to Paragon Bank, landlords are now enjoying a delightful average yield of 7.11% as of April 2025. That's just a whisker away from the 7.12% high of 2011!

What's the secret sauce behind this success? It's a cocktail of moderate house price inflation and rent hikes, stirred by a potent mix of tenant demand and a pinch of property undersupply. This dynamic duo has pushed yields up from the 13-year high of 6.94% at the end of 2024.

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Russell Anderson from Paragon Bank explains that even amidst the economic jitters caused by Trump's tariff threats, buy-to-let remains a golden goose for investors. Savvy landlords are targeting properties with higher returns, like HMOs, or snapping up bargains in affordable areas with high tenant demand.

Wales is leading the charge with a whopping average yield of 8.43%, while Greater London lags behind at 5.78%. But don't fret, Londoners, you're still seeing a 30 basis point boost since late 2024.

So, whether you're a seasoned landlord or a budding investor, it's time to take a closer look at the buy-to-let market. With yields climbing and opportunities aplenty, the future looks bright for those ready to dive in. Cheers to strong returns and happy tenants!

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Want to hear more? Join Mal & Matt on the Property AI Report Podcast each week!

Access from your preferred podcast provider by clicking here

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