Calculate gross and net rental yield — and see how your property compares to UK benchmarks.
Property Details
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Insurance, maintenance, agent fees, void periods, safety certificates. Leave 0 to see gross yield only.
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Gross Yield
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Net Yield
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Annual Profit
Property Value—
Monthly Rent—
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Annual Net Rental Income—
Gross Yield—
Net Yield—
Yield figures are for illustrative purposes. This calculator does not account for income tax on rental profits, mortgage costs, stamp duty or capital appreciation. Results are before income tax and should not be treated as financial advice.
UK Rental Yield Benchmarks
Rental yields vary significantly by location. Here is a rough guide to typical gross yields across major UK cities in 2026:
City / Region
Typical Gross Yield
Rating
Glasgow
7–9%
High
Liverpool
6–8%
High
Manchester
5.5–7.5%
High
Leeds
5–7%
Solid
Birmingham
5–7%
Solid
Sheffield
5–6.5%
Solid
Bristol
4–5.5%
Average
London (outer)
3.5–5%
Average
London (prime central)
2.5–4%
Low
Source: indicative averages from UK property investment data 2025–26. Individual properties vary.
Gross vs Net Yield Explained
Gross yield is the simplest metric: (Annual Rent ÷ Property Value) × 100. It ignores all costs and gives you a quick comparison tool.
Net yield deducts your annual landlord running costs before dividing by the property value: ((Annual Rent − Annual Costs) ÷ Property Value) × 100. This is the figure that actually reflects what you earn on the property.
The gap between gross and net yield is typically 1.5–2.5 percentage points, depending on whether you use a letting agent, the age and condition of the property, and any leasehold charges.
What Costs Reduce Net Yield?
Letting agent fees — 8–12% of rent monthly for full management, or a one-off fee for tenant-find only
Landlord insurance — buildings and contents: £200–£400 per year
Maintenance and repairs — budget 0.5–1% of property value per year for upkeep
Gas Safety Certificate — mandatory annually: £60–£100
A gross rental yield of 5–6% is generally considered solid. Cities in the north of England and Scotland typically see yields above 6%, while prime London postcodes may see gross yields of 3–4%. Net yield — after landlord costs — is typically 1.5–2 percentage points lower. What counts as "good" also depends on your financing costs and how much capital appreciation you expect.
Gross yield = (Annual Rent ÷ Property Value) × 100. It ignores all costs. Net yield = ((Annual Rent − Annual Costs) ÷ Property Value) × 100. Annual costs include landlord insurance, maintenance, letting agent fees, void periods and safety certificates. Net yield gives a more accurate picture of actual return on the property value.
Gross yield: (Monthly Rent × 12) ÷ Property Value × 100. Example: £900/month on a £200,000 property = (£10,800 ÷ £200,000) × 100 = 5.4% gross. For net yield, deduct annual costs from the annual rent first: (£10,800 − £2,000) ÷ £200,000 × 100 = 4.4% net.
Key annual costs: letting agent management fees (8–12% of rent), landlord insurance (£200–£400/year), maintenance and repairs (budget 0.5–1% of property value), gas safety certificate (£60–£100), electrical inspection (every 5 years), and void periods (2–4 weeks per year). Leasehold properties also have ground rent and service charges which can be significant.
No. Rental yield measures income return only — rent received relative to property value. Capital appreciation (increase in property value over time) is separate and forms part of total return. In London and high-demand areas, investors often accept lower yields because they expect stronger capital growth. Northern cities typically offer higher yields with lower expected capital appreciation.
Written and reviewed by the UKCalc Editorial Team. UKCalc’s calculators and analysis are built and maintained using verified statutory data and official sources. Published by Animateed Limited. About UKCalc · Editorial policy · Methodology
Last reviewed: 9 August 2026 · Rates: 2026/27 tax year unless stated otherwise.
Rates, assumptions and sources
What yield measures, and which figures here are statutory. Official figures last checked on 2 September 2026.
Official figures this calculator applies
Rental income and allowable expenses — tax is charged on rental profit after allowable expenses, with finance costs relieved as a 20% tax credit rather than a deduction. GOV.UK: Working out your rental income
Gross and net yield are conventions, not regulated definitions. Gross yield is annual rent ÷ purchase price. Net yield deducts running costs. Different sources include different costs, so yields are rarely comparable between websites.
Void periods, letting fees, maintenance, insurance and ground rent are your inputs. A net yield calculated with zero voids is not a net yield.
Yield ignores mortgage costs, capital growth and tax. It measures the property, not your return as an investor.
Yield is not return. A geared purchase can show a healthy yield while producing negative cash flow after mortgage interest and tax. Model the cash flow, not just the yield.