Buy-to-let yields are at a 15-year high
Paragon using its internal data has reported an average gross buy-to-let yield of 7.22% for Q3 2026. Up from 6.94% a year earlier. It’s the highest figure in its data since early 2011.
The regional differences are substantial. The East Midlands averaged 8.10%, the North East 8.02%, and Greater London 5.79%.
“15-year-high yields” are not “15-year-high profits”. These are gross yields, calculated before mortgage payments and the costs of owning and letting the property.
A 7.22% gross yield on a £200,000 property works out at about £1,203 a month, assuming it’s let throughout the year. On a £150,000 interest-only mortgage, a one-percentage-point increase in the interest rate would add £1,500 a year in interest costs. One empty month would mean roughly £1,203 in missed rent, reducing the actual gross yield to around 6.62%. The advertised gross yield might stay the same, but both scenarios affect the money left over, and that’s before repairs, insurance, management fees, compliance costs and tax.
Rents are holding up relative to property values, but the test for an individual landlord is still the deal’s cash flow at today’s borrowing costs, including a realistic allowance for things going wrong.
Regional yields
| Region | Q3 2026 | Q3 2025 |
|---|---|---|
| East Midlands | 8.10% | 7.55% |
| North | 8.02% | 8.17% |
| Scotland | 7.95% | 7.57% |
| North West | 7.88% | 7.75% |
| South West | 7.79% | 7.80% |
| Wales | 7.79% | 7.85% |
| East Anglia | 7.53% | 7.39% |
| West Midlands | 7.38% | 7.22% |
| South East | 6.58% | 6.44% |
| Greater London | 5.79% | 5.62% |
Yield by property type
| Property type | Q3 2026 | Q3 2025 |
|---|---|---|
| HMO | 8.80% | 8.43% |
| Multi-unit block | 7.36% | 7.02% |
| Flat | 6.66% | 6.26% |
| Terraced | 6.46% | 6.25% |
| Semi-detached | 5.75% | 5.57% |
| Bungalow | 5.23% | 5.05% |
| Detached | 4.77% | 4.75% |
Source:
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