Fleet Mortgages’ Rental Barometer for Q3 2026 saw portfolio landlords dominate its application volumes.
The average number of investment properties owned by borrowers increased to 18 from 16 in Q2, while 66% of applications were submitted by landlords with at least four properties.
The share of applications from those owning 15 or more buy-to-let (BTL) properties rose from 26% to 30%.
Meanwhile, landlords holding between one and three BTL properties accounted for 24% of applications, down from 29% in Q2.
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Yields rise year-on-year
Data also showed that average yields across England and Wales were up year-on-year by 0.4% to 7.9%.
Yorkshire and the Humber moved to the top of the regional yield rankings at 9.3%, narrowly overtaking the North East at 9.2%.
Greater London remained the lowest yielding region at 6.4%, despite average monthly rents rising to £2,597, while the North East continued to be the most affordable region, with average rents of £792 per month.
Limited company landlords slip
Limited company applications accounted for 71% of all business during the quarter, down from 78% in Q2. Private investors represented the remaining 29%.
Overall, purchase activity softened in Q3, accounting for 34% of Fleet Mortgages’ business compared with 36% in the previous quarter, although it remained above the 33% recorded in Q1.
Steve Cox, chief commercial officer at Fleet Mortgages, commented: “It is not surprising to see purchase activity ease slightly during the quarter, or rental cover come under further pressure, but we should be careful about interpreting either of those movements as landlords stepping away from buy to let.”
Cox highlighted that the Renters’ Right Act and financial market volatility were crucial changes in the market the landlords faced this year.
He said: “Professional landlords continue to grow their portfolios where the right opportunities present themselves, even if market conditions influence precisely when they decide to purchase or refinance.
“What remains encouraging is that, despite everything the sector has dealt with during 2026, experienced landlords are continuing to invest and new landlords are still entering the market. Conditions may continue to move, but our Q3 figures suggest the longer-term commitment of professional landlords to the private rental sector remains strong.”
