London versus the regions
London remains defined by high asset values and rental income. Central London landlords reported the highest average portfolio value at £3.7 million and the highest rental income per property at £17,989, though yields came in below the national average at 5.3%.
Outside the capital, several regions recorded stronger yields. The East of England and East Midlands both topped the table at 7.3%, followed by Yorkshire and The Humber at 6.8%, the North East at 6.6%, and both the South West and West Midlands at 6.5%.
Profitability and operational risk
Profitability held up well across most of the country. The East Midlands recorded the highest share of landlords turning a profit at 92%, with the West Midlands at 90%, the East of England and South West at 89%, and the South East at 87%.
However, the data also shows that higher-yielding regions carry greater operational risk. The North East, despite its 6.6% average yield, recorded the highest proportion of landlords experiencing void periods at 55%, with rental arrears affecting 42%. Arrears were also elevated in Yorkshire and The Humber at 43%, the North West at 39% and the East Midlands at 37% — all well above the UK average of 26%.
Portfolio restructuring
The North West recorded the highest share of landlords selling properties in the past year at 30%, followed by Yorkshire and The Humber at 29% and the East Midlands at 25%. Purchasing activity was more subdued overall, though the North East stood out, with 18% of landlords reporting a purchase in the same period.