Average buy-to-let yield rises to 7.22% in Q3, the highest since early 2011, Paragon Bank finds

Paragon Bank puts the average buy-to-let yield at 7.22% in the third quarter of 2026, up 0.22 points on the previous quarter and the highest since the first quarter of 2011. Paragon attributes the climb, which has run since 2022, to subdued house price growth alongside sustained demand for private rented homes, so rent is worth more relative to purchase price. For buyers weighing an investment purchase, the gap is regional: the East Midlands leads at 8.1% and the North East at 8.02%, against 5.79% in Greater London; for sellers of rental property, firmer yields can help keep landlord buyers in the market. Yield measures rent against value before borrowing costs, which have risen sharply this year, and Paragon has not published the sample behind the figure, so this is a signal about rent-to-price ratios rather than landlord profit.