While new regulations continue to increase the administrative demands on landlords, rental yields are showing signs of resilience. 

According to a market research, Landlord Trends report, the average yield now stands at 6.5%, matching the decade-high recorded in late 2024. 

Regional performance varies, with landlords in the North West, North East, and East Midlands reporting returns above 7%, while London trails at 6.1%. 

Profitability remains strong: 87% of landlords say they are currently in profit—21% significantly so, and 66% modestly. Just 5% report operating at a loss. 

These figures emerge as the Renters’ Rights Bill approaches Royal Assent, expected before the end of September.

With only a small minority of landlords just14% are fully informed about the Renters’ Rights Bill, ongoing uncertainty is likely to prompt strategic reassessments across the sector.

A director at the market research company, said: “Yields at a 10-year high are a clear signal of the enduring strength of the private rented sector. Despite the significant challenges landlords have faced over recent years – from higher borrowing costs to shifting tax rules – the fundamentals of tenant demand and income generation remain robust. The fact that almost nine in 10 landlords are still making a profit demonstrates the sector’s ability to weather economic and policy storms.”

“At the same time, the policy landscape is far from settled. The Renters’ Rights Bill represents the most significant set of changes in a generation, and while intended to protect tenants, it is also adding to landlord uncertainty. Our data shows landlords remain committed, but for many the coming 12 months will be a crucial period to review portfolios, financing and business models in light of what’s ahead.”