A recent survey commissioned by Aldermore shows that despite a challenging environment, landlords are reporting their strongest returns in years. According to the data:
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89% of landlords say they are making a profit from their rental activity — the highest level since 2019.
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The average achieved gross rental yield is 6.6% — the best level in more than a decade.
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Regionally, landlords in the North West and Yorkshire (two of the best growth regions in the UK) are seeing gross yields hit 7%.
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Yet despite these strong numbers, landlord confidence is falling: expectations for future yields and capital gains are down 3% and 4% respectively. Only 2% of respondents feel confident about the UK’s economic outlook.
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A large majority of landlords (73%) fear the impact of the Renters’ Rights Bill, and 92% are worried about a possible national insurance tax on rental income.
What This Tells Us About the Property Market
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Strength through scarcity – The fact yields are rising suggests that, even amid cost pressures and regulation, the rental market remains tight. Landlords are able to achieve good returns because demand is strong relative to supply.
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Regional opportunity shining – The highest yields being reported in the North West and Yorkshire & Humber underline what many investors already suspect: regions outside London are offering more attractive investment metrics.
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Confidence disconnect – The paradox is clear: returns are strong, yet sentiment among landlords is fragile. This points to an underlying anxiety about future regulation, tax changes and wider economic headwinds.
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Regulatory risk is real – The heavy concern among landlords about the Renters’ Rights Bill and potential tax changes underscores that regulatory change is not just theory — it is actively affecting behaviour, strategy and risk assessment in the buy-to-let sector.
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Investment strategy must adapt – Good returns today don’t guarantee smooth sailing tomorrow. Investors need to focus not only on yield, but on location, regulation resilience, property quality, tenant risk and future capital gain prospects.
Why This Matters For You As An Investor
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If yields are climbing and certain regions are outperforming (especially Northern regions), then smart investors should prioritise markets where entry costs are modest but rental demand strong.
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Because sentiment is shaky and regulation uncertain, choosing the right property in the right location becomes even more crucial: quality asset, strong local demand, good management, clear exit strategy.
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Regional markets in the North (where yields are higher) look particularly attractive — especially as London’s market shows signs of strain.
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With regulation and taxation shifting, risk mitigation is as important as yield chasing: having conservative models, buffers for voids, and flexibility will help weather policy changes.
The current property market presents a strong window of opportunity for investors. Many large national housebuilders are quietly offering off-market deals to clear excess stock, giving buyers access to high-quality properties at genuine below-market-value prices.
Interestingly, while some sellers are behaving as though prices are falling, the reality is very different — UK property values have actually risen by around 2.5% this year. This disconnect between perception and performance means savvy investors can secure excellent deals before the wider market catches up.
