Landlords Returning to the Investment Market Following Increased Rental Yields

- Wed 30 Jul 2025

Following lots of media reports on private landlords exiting the private rentals sector due to the increased legislation over recent years, in addition to the looking Renters Rights Bill that is currently being finalised, a report from Trade body, UK Finance, highlights an increase in buy to let mortgage applications.

UK Finance has released their figures showing that during the first 3 months of 2025, a total of 58,347 buy-to-let mortgage applications were advanced, which equates to a 39% increase in numbers against the same period the year before.

The report provides more encouraging news for the sector with the average gross rental yield having increased to 6.94% from 6.88% over the same period the year prior.

Darren Ellis, Bradleys Sales Director, commented “This is certainly encouraging news, and reflects the increase in sales to investors that we have also witnessed, which will be in part down to reduced interest rates, and due to property values having been corrected enabling better yields. Residential property will always be sought after; over a reasonable period of time it will also provide a sound investment with both capital growth and monthly income.”

Bradleys Estate Agents provide a lettings and property management service across Somerset, Devon and Cornwall through their 30-office network, including a free switching service for any landlords that may not be happy with their existing arrangements. Full details are available via their website.