Paragon Bank reported average gross buy-to-let yields of 7.22% in the third quarter of 2026, the highest level since the first quarter of 2011. Stronger headline yields may renew landlord interest, but they should not be treated as a complete measure of investment viability amid financing costs, tax, maintenance, regulation and void-period risk.
Ownership structure remains central to the advice conversation. Industry commentary highlights how personal versus limited-company ownership can affect borrowing capacity, mortgage options and longer-term plans. Advisers can use data and AI-enabled research tools to compare criteria and organise portfolio information, but should work with tax specialists where appropriate and avoid presenting gross yield as a forecast of net return.
- Assess net cash flow, not yield alone.
- Consider refinancing exposure and interest-rate sensitivity.
- Discuss ownership structure alongside clients’ wider tax and succession objectives.