Rental returns are the strongest they have been in years, but a new legal duty is on the way for every landlord in England. Here is what the latest figures mean and what to get ready now.
Yields at their highest since 2011
Paragon Bank's latest quarterly data, reported on 12 October 2026, puts the average gross buy-to-let yield at 7.22% in Q3 2026, up from 7.00% in Q2 and the highest reading since early 2011.
- By region: the East Midlands led at 8.10%, followed by the North East (8.02%), Scotland (7.95%) and the North West (7.88%). Greater London was lowest at 5.79%.
- By property type: HMOs averaged 8.80%, multi-unit blocks 7.36%, flats 6.66% and terraced homes 6.46%.
Higher yields matter because lenders size buy-to-let loans largely on rent. A stronger rent-to-value ratio can help when you refinance, raise capital or add to a portfolio, although each lender applies its own stress test and criteria.
The landlord register starts on 15 December
Under the Renters' Rights Act 2025, the government's "Register your rental property" service (the PRS Database) opens on 15 December 2026, starting with the West Midlands and rolling out region by region. According to the NRLA, landlords get three months from their region's start date to register, with London's deadline on 14 October 2027 and the final region (South West) on 14 November 2027.
- You will receive a landlord number and a separate number for each let property, which must appear in adverts.
- The NRLA reports a fee of £65 per property per year.
- Civil penalties run up to £7,000, or up to £40,000 for serious or repeat breaches, and unregistered landlords can be blocked from most possession claims.
Why this matters for your finance
Lenders already ask detailed questions about tenancies, licensing and compliance. Once the register is live, expect your registration numbers to become part of the paperwork for remortgages and new purchases. Getting your records in order now means fewer delays later.
Quick tips
- Check your current rent against today's local market before you refinance; your yield may have improved.
- Keep an up-to-date portfolio schedule with rents, values, loan balances and deal end dates.
- Gather gas safety, EPC, electrical (EICR) and any HMO licence documents now, ready for registration.
- Note your region's start date and diarise the three-month window.
- If you hold property personally and through a limited company, review both sides before your next deal.
Want to see how today's rents could support your borrowing? Try our buy-to-let calculator, read our guide to buy-to-let affordability and ICR, or see how we help portfolio landlords. Most buy-to-let mortgages are not regulated by the FCA.
Sources
- The Intermediary: BTL yields reach highest level since 2011, Paragon Bank finds (12 October 2026)
- Money Age: BTL yields reach 15-year high in Q3 (12 October 2026)
- NRLA: Register Your Rental Property service
- Property Reporter: Government sets launch date for mandatory rental property register (9 September 2026)
To talk it through, contact us or start your enquiry.
Important: This guide is general information, not personal advice. Rules, rates and lender criteria change; speak to an adviser about your circumstances. Your home may be repossessed if you do not keep up repayments on your mortgage.