The latest Q2 2026 Pegasus Insight Landlord Trends report, produced with Foundation, shows that while the buy to let sector remains resilient, regional market differences are increasingly shaping landlord behaviour.
Nationally, 86% of landlords report making a profit and average rental yields stand at 6.4%. However, performance varies significantly by region, with notable differences in yields, profitability, arrears and investment activity.
For brokers, understanding these local dynamics is key to helping landlords identify opportunities, manage risk and make informed investment decisions.
Key insights for brokers:
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Strong profitability nationwide: 86% of landlords are profitable, while only 5% report a loss
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London remains a high-value market: Central London portfolios average £3.7m, generating rental income of £17,989 per property, although yields are lower at 5.3%
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Regional markets lead on yields: The East of England and East Midlands lead with average yields of 7.3%, followed by Yorkshire & The Humber at 6.8%
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Highest profitability levels: The East Midlands has the highest proportion of profitable landlords (92%), followed by the West Midlands (90%)
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Arrears hotspots emerging: Yorkshire & The Humber (43%), the North East (42%) and the North West (39%) report the highest levels
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Portfolio reshaping continues: 22% of landlords sold a property in the past year, compared with 6% who purchased
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Investment activity remains selective: The North East saw the strongest acquisition activity, with 18% of landlords buying property in the last 12 months
As regional differences become increasingly pronounced, brokers have an important role to play in helping landlords look beyond national averages and understand the realities of their local markets. Whether discussing portfolio reviews, refinancing strategies, future acquisitions or long-term investment goals, a deeper understanding of regional trends can help brokers provide more valuable advice and continue making mortgages happen.
To learn more about the latest regional landlord trends and what they mean for your landlord clients, read our latest blog on the Foundation Insights page here.