Understanding UK rental yields

Yield is the simplest measure of rental income vs cost. Used well, it shortlists candidate areas fast — used badly, it ignores the costs that actually determine returns.

Gross vs net yield

Gross yield is annual rent ÷ purchase price. Net yield deducts management, maintenance, voids, insurance and finance cost. The gap can be five to seven percentage points on a leveraged purchase, so net is the number that matters in cashflow terms.

What's a strong UK yield?

The strongest single-let gross yields cluster around the north of England, parts of Wales and the lowest-priced metro districts. The Property Scout highest-yield postcodes ranking shows the current top 25.

Explore the Property Scout data