Landlords across England and Wales continue to benefit from strong rental yields, with northern regions leading the way, according to Fleet Mortgages.

Rental yields continued to increase across several key regions, with the North East delivering the highest yield at 9.2%, followed by the North West at 8.4% and Yorkshire & Humberside dipping slightly from 8.5% last year to 8.1%.

Steve Cox, Chief Commercial Officer at Fleet Mortgages, said: “There has been much discussion around landlords exiting the market, but our data shows a steady level of purchase activity alongside remortgages. While challenges exist, landlords who manage their portfolios effectively are still benefiting from solid returns.

“The data clearly shows that where opportunities exist, landlords— both new and experienced— are actively purchasing.

“The regional disparities remain keen though, with affordability and strong yields making northern regions particularly attractive.

“Despite increasing costs, including the higher 5% stamp duty surcharge introduced last year, landlords remain committed to expanding their portfolios. This is crucial given tenant demand continues to outstrip supply, resulting in ongoing rental growth.”

Although the average rental yield stayed the same quarter-on-quarter at 7.4% across England & Wales, there was a yearly increase of 0.3%.