Property Yield Calculator UK — Gross and Net Rental Yield
Calculate gross and net rental yield on UK investment properties. Compare yields across different cities and property types to find the best returns.
UK rental yields vary dramatically by location: northern cities like Liverpool and Manchester offer 6-8% gross yields while London yields are typically 3-4%. Net yield (after mortgage costs maintenance void periods management fees and tax) is 2-3% lower than gross. Understanding the difference between gross and net yield is crucial for making profitable property investment decisions.
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Key Information
| Parameter | Details |
|---|---|
| Average Gross Yield (UK) | 5.2% (2026) |
| Liverpool / Manchester | 6% - 8% gross |
| London | 3% - 4% gross |
| Net Yield (typical) | 2% - 3% lower than gross |
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Use Calculator NowFrequently Asked Questions
What is a good rental yield in the UK?
Gross yield above 5% is generally considered acceptable for buy-to-let investment with 6-7%+ being strong. However gross yield does not tell the whole story. After deducting mortgage interest (60% of rent for many landlords) maintenance (10% of rent) management fees (10%) insurance void periods (5%) and tax the net yield may be only 2-3%. Focus on net yield and capital growth potential.
How to calculate rental yield?
Gross yield = (Annual rent / Property purchase price) x 100. For a £200000 property renting at £900/month: (£10800 / £200000) x 100 = 5.4% gross yield. Net yield deducts: mortgage interest (£6000/year at 5% on £120000 loan) management (£1080) maintenance (£1000) insurance (£300) void period (£450). Net income: £1970 / £200000 = 1.0% net yield before tax.
Are high-yield areas better for investment?
Not necessarily. High-yield areas (6-8%) in northern cities often have lower capital appreciation (2-3% annually) while low-yield London (3-4%) has historically shown stronger capital growth (5-7%). The best strategy depends on whether you prioritize monthly cash flow (choose high yield) or long-term wealth building (choose capital growth). Many investors diversify across both types.
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Last updated: March 2026