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5/12/25 4:43 pm
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Landlords across the country are enjoying better profits and yields than they have for several years, new research shows.
The poll by lender Aldermore reveals that despite numerous challenges, 89% of landlords report making a profit from their letting activity, the highest percentage since 2019. Meanwhile, the average achieved yield of 6.6% is the highest seen in a decade; regionally, landlords with property in the North West (7.4%), and Yorks & Humber (7.2%) secured the highest rental yields.
However, landlord confidence is down on each indicator when compared to this time last year. Looking ahead to the next quarter, expectations for yields and capital gains are down by 3% and 4% respectively, while an exceptionally low number of landlords feel confident about the UK’s economic prospects - 2% compared with 3% in the same period last year.
“The numbers here paint an interesting picture, one that might seem contradictory at first glance,” says Aldermore’s director of mortgages, Jon Cooper. “While the average landlord is seemingly doing the best since pre-pandemic days when it comes to profits and yields, what’s increasingly obvious is that many landlords still feel jittery about what the next few years will bring.”
The research highlights that nearly three-quarters (73%) fear that the Renters’ Rights Act will have a negative impact on their letting activity, while nearly nine out of 10 landlords (88%) are generally concerned about the introduction of the legislation.
However, Cooper believes there may be potential benefits for the countless good landlords operating in the market. “Many of the measures could boost trust and satisfaction among tenants, leading to longer tenancies, fewer void periods and fewer rent arrears,” he adds. “Upgrading properties could also mean higher property values.”
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