East Midlands Landlords Lead the Way. Is Your Rental Return Keeping Up?
East Midlands landlords are topping the rental yield table, with average gross returns reaching 8.1% in Paragon Bank’s latest research. But how much of that income do you actually keep? We explore what the figures mean for Derbyshire landlords and how Cope & Co. can help your property work harder through smarter management and better cost control.
I'm sure you'll agree, landlords have had plenty to digest recently. Higher costs, changing legislation and more administration have hardly made owning a rental property feel straightforward.
So, here is some welcome news!: The East Midlands has recorded the highest average gross rental yield of any region in Paragon Bank’s latest analysis, at 8.1%.
For landlords in Derby, Alfreton and across Derbyshire, that is an encouraging headline. It is also a good reason to ask a practical question; are you getting the best from the property you already own?
What do the figures tell us?
Paragon’s third quarter 2026 research puts the East Midlands average gross yield at 8.1%, up 0.55% on both the previous quarter and the same period last year.
Across the bank’s overall figures, average gross yields reached 7.22%, their highest level since the first quarter of 2011. Paragon attributes the improvement to relatively subdued property price growth alongside sustained demand for rented homes. This relationship really does matter as property does not need to be particularly expensive to generate a healthy rental income. Where purchase prices are more affordable relative to rents, the yield can be stronger.
However, an East Midlands average is not a valuation of your individual property. A family home in Alfreton, a city centre flat in Derby and a shared house elsewhere in the region can obviously have very different costs, tenant demand and returns.
Why should landlords take Paragon seriously?
Now, I see stats, reports and figures all the time and tend to pick and choose which ones I actually take notice of! These figures caught my eye because Paragon is an established specialist buy-to-let lender with around three decades of experience working with landlords and limited companies. Rental property is a core part of its business, giving it direct experience of the sector and the financial decisions landlords make.
This particular report uses properties included in Paragon’s buy-to-let mortgage offer data. That gives the research a practical foundation in lending activity, rather than simply relying on advertised rents. Its historical figures also allow comparisons over time.
There is still an important qualification here though; Paragon is a commercial lender, and its customers and property mix do not represent every landlord or rental home. These figures provide a useful market benchmark, rather than a promise that every East Midlands property should achieve 8.1% - how good would that be!
A healthy yield is not the same as a healthy profit
Without trying to insult your intelligence... gross rental yield is the annual rent expressed as a percentage of the property’s value, before costs and this is important to understand.
For example, a property worth £180,000 letting for £1,000 per month produces £12,000 a year in rent. Its gross yield is approximately 6.67%, assuming a full year’s rent is received.
That calculation does not deduct maintenance, management fees, insurance or other running costs. Mortgage payments and tax also affect what the landlord ultimately keeps.
A rising gross yield does not automatically mean the property has increased in value, either. The percentage can rise because rent increases, the property’s value falls, or a combination of both. The headline is useful. but your own figures are what should drive your decisions.
How Cope & Co. can help improve your return
Small improvements can result in a bigger overall return.
Improving your rental return does not always require a dramatic rent increase or an expensive refurbishment. Often, the opportunity lies in marginal gains; making small improvements across the different elements that influence your property’s performance.
A slightly shorter gap between tenancies. A modest saving on management fees. A repair dealt with before it becomes a bigger problem. A sensible rental adjustment supported by the local market. Individually, each might seem relatively minor., but together, they can make a meaningful difference to your annual return.
The key is to look at the whole picture. Saving a few pounds on maintenance achieves little if putting off a repair leads to a much larger bill. Equally, chasing a higher rent can prove expensive if it leaves your property empty for longer.
At Cope & Co., this is how we approach property management and performance - looking for practical improvements across pricing, marketing, tenant relationships, maintenance and costs. There may be no single magic solution, but getting lots of small things right can add up to a considerably better result.Improving a property’s performance involves more than asking the tenant for more money. It means looking at rental income, occupancy, running costs and the quality of management together.
An accurate rental assessment is a sensible starting point. An outdated rent may leave income unrealised, but an unrealistic asking rent can leave a property empty. The aim should be a sustainable market rent supported by evidence, with any change handled through the correct process.
Consider an illustrative example; securing an extra £50 per month generates £600 over a full year. Leaving a £1,000-per-month property empty for an additional month while chasing that increase loses £1,000 in rent. That is why pricing and occupancy need to be considered together.
Presentation matters too. Before spending heavily, it is worth discussing which improvements are likely to help attract suitable tenants. Fresh decoration, practical storage or addressing tired fittings may be more appropriate than an expensive refurbishment that the local rental market will not reward.
During the tenancy, clear communication and prompt attention to repairs can support tenant satisfaction and help identify maintenance issues before they become more disruptive. Good management cannot prevent every problem, but it can help reduce avoidable losses.
LetSimple: look at what you keep
Management costs also deserve attention because the right level of support can make a real difference to your property’s performance. At Cope & Co., we offer a range of services, from finding and referencing tenants through to rent collection and full property management. We can help with marketing, rental assessments, inspections, maintenance co-ordination and compliance, with support tailored to your circumstances.
For a landlord with a property portfolio, LetSimple is a good example of how bringing those services together can improve cost control and consistency. Our monthly subscription replaces percentage-based management fees, with fees reducing as tenancies continue. It combines lettings and management with rent guarantee insurance, subject to the applicable terms and cover conditions.
Across several properties, small savings can add up. Having one team overseeing your portfolio also makes it easier to review costs, spot properties that need attention and plan maintenance.
Lower management costs do not change your gross rental yield, but where they reduce your overall expenditure, they can improve the return you keep. We can prepare a tailored LetSimple comparison against your existing arrangements, helping you assess the potential benefit across your whole portfolio.
Our LetSimple service brings lettings and management together through a monthly subscription rather than a percentage of rent. Its fee structure rewards longer tenancies, with fees reducing as the tenancy continues. The service includes marketing, tenant referencing, inspections, maintenance coordination, compliance support and rent guarantee insurance, subject to the applicable terms and cover conditions.
What does this mean for Derbyshire landlords?
Our view is pretty straightforward - the East Midlands figures are encouraging, but a strong regional market is only part of the picture.
The right rent, a well-maintained home, sensible expenditure and consistent management all contribute to a property that works for both its owner and its tenants.
Whether you own one rental property in Derby, several in Alfreton or a portfolio across Derbyshire, it is worth understanding where your income goes and what could work better.
Want to find out whether your rental property could be working harder?
Book a no-obligation LetSimple discovery call with Cope & Co.. We can discuss your rent, management arrangements and costs, then help you identify practical opportunities to improve your return.
Clear advice. Local knowledge. A plan built around your property.
