The average rental yield achieved by landowners has increased to the highest level since the fourth quarter of 2024, March 2011, Paragon Bank reveals.
Rental yields achieved by landlords averaged 6.93% in December 2024. 
The figures reveal a high increase from 6.72% at the end of the third quarter of 2024, representing an increase of 30 basis points from the same period in 2023.
Paragon suggests that this will continue to increase in yields from mid-2022, rent inflation remains stable, rents continue to rise, causing disparity between private rental housing and tenant supply and demand. It's supported.
On a regional basis, the highest yield of 8.09% was achieved by landlords with Welsh property. The northwest followed where the buyer (BTL) properties produced the southwest, where landlords saw a 7.75% return.
Greater London landlords had the lowest average rental yield of 5.48%.
Property types, considered complex businesses, often produced the strongest returns on BTL investments.
Multiple occupational housing produced the highest yield of 8.40%, followed by 7.28% freehold block, 6.09% flat and 6.05% terraced homes.
“The Commercial Commercials Director at Paragon Bank” said: “The Commercial Commercials of Paragon Bank is a great place to go.”
“If you are buying in an area where landlords are strategically invested and the home is relatively affordable and targeting more complex real estate types, Buy-to-Let offers a strong return.”
“A key element of this is demand, which has outperformed the supply of privately owned housing for some time. This has led to market rents rising and, as a result, strong despite the inflation in home prices. It helped me to maintain a good yield.”
