Brokers urged to look beyond rates as new research reveals stark differences in yields, profitability and arrears across UK regions
Regional variation is increasingly influencing landlord decision-making across the UK, according to the latest Landlord Trends report from Pegasus Insight.
The Q2 2026 research, produced with specialist buy-to-let lender Foundation, suggests the BTL market remains broadly resilient. Landlords reported an estimated average portfolio value of £1.8 million, gross rental income of £12,007 per property and average yields of 6.4%. Some 86% said they were operating at a profit, while 5% reported a loss.
Over the past 12 months, 22% of landlords sold a property compared with just 6% who acquired one, pointing to active portfolio reshaping in response to shifting market conditions.
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.
"The latest research reinforces the fact there is no such thing as a typical buy-to-let market," said Grant Hendry (pictured right), director of sales at Foundation. "While headline figures show a sector that remains profitable and resilient, the regional data reveals very different opportunities and challenges depending on where landlords are investing
"London continues to offer exceptional portfolio values and rental income, while many regional markets are producing stronger yields. At the same time, some of the highest-yielding areas are also experiencing greater levels of arrears and void periods, highlighting the need for a balanced approach to portfolio management."
"For brokers, understanding these local market dynamics has never been more important. The most effective advice goes beyond simply comparing rates and products. It involves helping landlords assess their long-term objectives, refinancing requirements, acquisition plans and portfolio strategy. By understanding the regional picture, brokers can better support clients in identifying the most appropriate opportunities and solutions, ultimately making mortgages happen."
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