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TIMES
October 2025
SH ND & PROPERTY NIG
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LANDLORD
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Monthly news for landlords brought to you by:
YIELDS REACH A 10 YEAR HIGH BUT RENT RISES ARE SLOWING
Buy-to-let profitability has rebounded strongly, with average rental yields now at their highest levels in a decade. The latest Landlord Trends report (Q2 2025) from mortgage market specialist Pegasus Insight found the average rental yield stands at 6.5%, the same as the 10-year peak recorded in Q3 2024. Regionally, landlords in the East Midlands, north west and north
east report the strongest returns with averages of more than 7%. London has the lowest at 6.1%. Profitability is also robust with 87% of landlords saying they are making a profit. A fifth describe it as a “large” profit and 66% as a “small” profit. Only 5% report any loss. Pegasus suggests this highlights the resilience of the buy-to-let market despite the backdrop of
looming legislative changes with the Renters’ Rights Bill likely to receive Royal Assent by the end of this month and ongoing tax pressures. Elsewhere the report found the majority of landlords (61%) expect to increase rents in the year ahead. However this is fewer than the 78% a year ago. For those intending to raise rents, the average anticipated rise is 6%,
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