Rental Yield Calculator
Calculate gross and net rental yield for any UK buy-to-let property. Know your return before you commit.
Expected monthly rental income, excluding bills
Annual running costs (optional — for net yield)
Interest-only mortgage payments only (not capital repayment)
What is a good rental yield in the UK?
Prime central London (Westminster, Kensington, Camden). Growth play, not income — yields here have averaged 2.5–3.0% since 2019.
The UK private rental sector averages around 4.7% gross (Zoopla Rental Market Report, 2026). Typical for southern city flats.
Target range for most buy-to-let investors. Common across the Midlands and parts of the North; covers a 75% LTV mortgage at current rates with margin.
HMOs, student lets, and high-yield Northern postcodes (Liverpool L1/L7, Sunderland SR1, Bradford BD1). Higher management burden and tenant turnover.
Gross vs net yield
Quick headline number. Ignores all costs. Useful for comparing properties at a glance.
The number that actually matters. Costs include agent fees, maintenance, insurance, voids, and mortgage interest.
Typical costs to model
| Cost | Typical range |
|---|---|
| Letting agent (full management) | 8–15% of rent |
| Maintenance & repairs | £500–£2,000/yr |
| Landlord insurance | £200–£800/yr |
| Void periods | 1–4 weeks/yr |
| Gas safety certificate | £60–£100/yr |
| EPC (if expired) | £60–£120 (every 10yrs) |
Ranges are indicative. Regional variation is significant — London maintenance costs tend to be higher. Always get quotes for your specific property.
Building a portfolio tracker or investment platform?
Pull live comparable rental and sale prices direct from the Homedata API. Combine price trends, live listings, and comparables to automate yield analysis across portfolios. Free tier: 100 calls/month, no credit card.
# Get comparable sold prices in the last 12 months
GET /api/comparables/{uprn}/?event_type=sold&count=10
# → sold_let_price, distance_meters, property_type, bedrooms
# Get price trends for an outcode
GET /api/price_trends/{outcode}/
# → monthly_average_prices, volatility_scoreWhat is rental yield?
Rental yield is the annual return on a buy-to-let property expressed as a percentage of its purchase price. It is the primary metric landlords and investors use to compare properties before buying. There are two versions: gross yield (before costs) and net yield (after costs). Most properties marketed as investment stock quote gross yield — net yield is the figure that tells you whether the investment actually pays.
Gross vs net yield — which to use
Gross yield is a quick comparison tool. Net yield is what you need to assess whether a property will be cash-positive after all costs.
- Gross yield = (annual rent ÷ purchase price) × 100
- Net yield = ((annual rent − running costs) ÷ purchase price) × 100
A property advertised at 8% gross yield might deliver only 5% net once you account for agent fees, maintenance, insurance, void periods, and mortgage interest. Model both before making an offer.
Why rental yield matters
Yield determines whether a property generates a monthly surplus or deficit. For most buy-to-let mortgages, lenders require rental income to cover 125–145% of the monthly mortgage payment (the interest coverage ratio test). A 5–7% gross yield typically passes this test at typical LTVs. Below 3–4% it often fails without a significant deposit.
Rental yield FAQ
See also: What is a good rental yield in the UK?
What is a good rental yield in the UK?
5–8% gross yield is considered strong. Below 3% is typical for prime London (capital growth story). Above 8% is achievable in HMOs or high-demand Northern cities.
How do I calculate rental yield?
Gross yield: (annual rent ÷ purchase price) × 100. Net yield: ((annual rent − running costs) ÷ purchase price) × 100. The calculator above does both automatically.
What running costs should I include?
Agent fees (8–15% of rent), annual maintenance (£500–£2,000), landlord insurance (£200–£800), void periods (1–4 weeks/year), gas safety certificate, and any mortgage interest.
Is 7% rental yield good?
Yes — 7% gross is above the UK average and comfortably covers most mortgage repayments at 75% LTV. Verify the rental income assumption is realistic for the specific area.
Where are the highest rental yields in the UK?
Historically in Sunderland, Middlesbrough, Bradford, Hull, and parts of Liverpool and Manchester — where prices are lower relative to achievable rents.
What is the difference between gross and net rental yield?
Gross yield ignores costs — it is a quick comparison tool. Net yield subtracts all running costs and shows what you actually earn. Always model net yield before making an offer.
Last reviewed: May 2026
Common questions
Integrate into your own product
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