Highest rental yields in the UK found in Hull, Yorkshire

2025 has been a year of growth for the UK residential property market. The latest research from Paragon Bank shows exactly how much investors are benefitting this year, and how this is the perfect time to buy UK investment property for sale.

UK Buy to let property is generating the highest average rental yield since February 2011. 

Rental yields at 14-year high in the UK

Rental yields have reached their highest rate for 14 years this month according to new data from Paragon. The average UK rental yield is now 7.11% across all residential property – making this a fantastic time to be a landlord.

The previous high was 6.94% recorded in Q4 2024, showing that rental yields are growing along with the rest of the property market. Not only are investors able to charge higher rents, but those rents are also delivering higher profits as a proportion of the overall purchase cost.

The new high also reflects annual growth of 0.4% in the average yield. That’s another great figure for existing and potential investors who want to see growth in the market.

Russell Anderson, Paragon Bank Commercial Director of Mortgages, said: “Our latest lending data highlights how average rental yields have continued to increase from the 13-year high we revealed at the end of last year. While the most recent economic instability caused by the threat of Trump’s tariffs is understandably impacting business confidence across many sectors, these figures offer tangible evidence that buy-to-let continues to offer strong returns for investors.

“This is particularly true where landlords employ a strategy of targeting properties that offer higher returns, HMOs being the most obvious example, or investing in areas where property is relatively more affordable but benefits from the strong tenant demand we see all over the UK.”

Where are rental yields highest in the UK?

The data shows that rental yields are highest in Yorkshire and the Humber (7.97%) and the North as a whole (7.94%).

That puts popular emerging buy to let locations like Sheffield and Hull in the spotlight as outstanding options for investors. Developments in those areas like City Point are therefore premium buy to let opportunities which are ideal for investors from around the world.

City Point as an example, it is close to completion and located in the centre of Hull. That puts it close to the local university, the waterfront, all of the most desirable job opportunities, the local train station and regeneration sites in the city.

On top of all that investors can also benefit from the property being in the region with the UK’s highest average rental yields, and a low entry point, with apartments starting from £128,000. It’s hard to imagine a better investment opportunity than that. You can read more about City Point and discover the final remaining investment apartments here.

How to invest for high rental yields?

If you want to secure high rental yields with UK buy to let property investments, the best place to start is getting in touch with our team of expert property consultants. They will help you devise a bespoke investment strategy that achieves your unique financial goals and maximise your returns.

Contact the team today and start your investment journey here.