Ready to become a landlord and want the biggest return on your investment?
It’s worth getting to grips with rental yield if you’re purchasing a buy-to-let property.
Gross rental yield is the annual rental income expressed as a percentage of the property price. Net rental yield also factors in the cost of maintaining and renting out the rental property. Both can help you decide if a property is a good investment.
The average gross rental yield in the UK is currently 5.8%. This is based on the average buy-to-let property costing £270,045 and the UK’s average rent being £1,301, according to our latest data.
Gross yields have improved across all regions in the last year as house prices have started to fall or remained the same while rents have continued to rise.
Keep in mind that tenant demand and the potential for house price growth - among other factors - should also be considered with property investment.
Top cities for rental yields in the UK
Sunderland, Aberdeen and Burnley top the chart for the highest rental yields in the UK, with average gross yields over 8%.
The top 17 cities for rental yields in the UK are all in the North of England and Scotland. In contrast, southern cities tend to have much higher house prices, bringing the gross yield down for buy-to-let properties.
Here’s how every city in the UK compares for gross rental yield.
City | Average gross rental yield | Average monthly rent | Average price of a buy-to-let property |
Sunderland | 9.3% | £659 | £84,924 |
Aberdeen | 8.3% | £734 | £106,170 |
Burnley | 8.2% | £634 | £92,473 |
Dundee | 8.1% | £809 | £119,569 |
Middlesbrough | 8.1% | £665 | £98,697 |
Hull | 8% | £669 | £99,819 |
Blackburn | 7.9% | £756 | £114,527 |
Glasgow | 7.8% | £1,012 | £154,945 |
Grimsby | 7.7% | £675 | £104,837 |
Liverpool | 7.7% | £870 | £136,045 |
Newcastle | 7.7% | £895 | £140,184 |
Barnsley | 7.3% | £734 | £120,211 |
Stoke | 7.2% | £774 | £128,613 |
Doncaster | 7.2% | £738 | £123,134 |
Preston | 7.2% | £861 | £144,178 |
Blackpool | 7.2% | £730 | £122,374 |
Bradford | 7.1% | £751 | £126,363 |
Rochdale | 7% | £912 | £155,386 |
Swansea | 7% | £896 | £153,501 |
Wigan | 7% | £834 | £143,288 |
Bolton | 6.9% | £885 | £153,908 |
Birkenhead | 6.8% | £794 | £140,061 |
Wakefield | 6.8% | £805 | £142,108 |
Newport | 6.8% | £949 | £168,030 |
Gloucester | 6.8% | £1,026 | £182,242 |
Coventry | 6.7% | £1,044 | £186,172 |
Ipswich | 6.7% | £945 | £169,474 |
Nottingham | 6.6% | £965 | £174,905 |
Cardiff | 6.6% | £1,147 | £208,162 |
Southampton | 6.6% | £1,180 | £214,230 |
Manchester | 6.6% | £1,144 | £207,712 |
Huddersfield | 6.6% | £755 | £137,585 |
Mansfield | 6.5% | £783 | £143,529 |
Peterborough | 6.5% | £961 | £176,276 |
Sheffield | 6.5% | £849 | £156,740 |
Derby | 6.5% | £860 | £158,967 |
Medway | 6.5% | £1,262 | £234,559 |
Plymouth | 6.4% | £912 | £170,619 |
Portsmouth | 6.4% | £1,195 | £223,906 |
Birmingham | 6.4% | £1,005 | £189,056 |
Leeds | 6.4% | £968 | £182,238 |
Warrington | 6.3% | £916 | £174,092 |
Northampton | 6.3% | £1,014 | £192,912 |
Swindon | 6.3% | £1,042 | £198,283 |
Telford | 6.3% | £893 | £170,834 |
Luton | 6.2% | £1,207 | £232,533 |
Leicester | 6.1% | £977 | £193,490 |
Edinburgh | 6% | £1,352 | £270,147 |
Norwich | 6% | £1,101 | £220,097 |
Bournemouth | 6% | £1,280 | £256,514 |
Crawley | 5.8% | £1,478 | £305,389 |
Aldershot | 5.8% | £1,382 | £286,775 |
Hastings | 5.8% | £1,061 | £220,184 |
Belfast | 5.8% | £820 | £170,363 |
Worthing | 5.8% | £1,204 | £250,527 |
Milton Keynes | 5.7% | £1,271 | £268,744 |
Bristol | 5.6% | £1,394 | £300,381 |
Reading | 5.5% | £1,429 | £309,749 |
Brighton | 5.5% | £1,648 | £358,137 |
Southend | 5.5% | £1,225 | £268,662 |
York | 5.3% | £1,150 | £262,055 |
London | 5.1% | £2,119 | £494,542 |
Oxford | 5% | £1,778 | £424,755 |
Cambridge | 4.7% | £1,600 | £408,709 |
Top regions for rental yields in the UK
Rents in the North East are cheaper than anywhere else in the country (£748) - and so are buy-to-let properties, at £114,098 on average. This gives the region the highest average yield in the UK of 7.9%.
It’s followed by Scotland (7.6%), the North West (6.8%), Wales (6.5%) and Yorkshire and the Humber (6.5%). Gross yields in these regions have risen over the last 3 months as rents have risen faster than house prices.
London offers the lowest gross yields in the UK of 5.1% on average, only 0.1 percentage point higher than 3 months ago. With higher mortgage rates, new regulations and low house price growth in recent years, rents appear to have reached an affordability ceiling and tenant demand is starting to moderate.
Rental Market Report - September 2025
The East of England and South East also offer lower gross yields of 5.6%. However, their rental yield has improved on last year as they are the two regions where house prices have fallen the most.
Region | Average gross rental yield | Average monthly rent | Average price of a buy-to-let property |
North East | 7.9% | £748 | £114,098 |
Scotland | 7.6% | £861 | £136,070 |
North West | 6.8% | £932 | £163,559 |
Wales | 6.5% | £918 | £168,859 |
Yorkshire and the Humber | 6.5% | £845 | £156,660 |
West Midlands | 6.2% | £970 | £188,870 |
East Midlands | 6% | £910 | £180,817 |
Northern Ireland | 5.8% | £803 | £167,126 |
East of England | 5.6% | £1,244 | £267,817 |
South West | 5.6% | £1,131 | £243,806 |
South East | 5.5% | £1,388 | £300,330 |
London | 5.1% | £2,119 | £494,5420 |
The highest yielding areas in each part of the UK
Looking for a buy-to-let property near where you live can be useful. You know the area, understand local influences on the market and can work closely with a nearby letting agent.
So it helps to know which parts of your region offer the greatest rental yield. Here are the top 3 local authorities for average yields in each UK region.
North East: 7.9% average gross yield
County Durham: 8% gross rental yield
Darlington: 7.8% gross rental yield
Gateshead: 8% gross rental yield
Scotland: 7.6% average gross yield
Renfrewshire: 9.5 gross rental yield
East Ayrshire: 10% gross rental yield
West Dunbartonshire: 9.2% gross rental yield
North West: 6.8% average gross yield
Wales: 6.5% average gross yield
Blaenau Gwent: 7.6% gross rental yield
Neath Port Talbot: 7.5% gross rental yield
Merthyr Tydfil: 7.2% gross rental yield
Yorkshire and the Humber: 6.5% average gross yield
Hull: 8% gross rental yield
North East Lincolnshire: 7.7% gross rental yield
Barnsley: 7.3% gross rental yield
West Midlands: 6.2% average gross yield
Stoke-on-Trent: 7.5% gross rental yield
Coventry: 6.7% gross rental yield
Newcastle-under-Lyme: 6.7% gross rental yield
East Midlands: 6% average gross yield
Nottingham: 6.6% gross rental yield
Mansfield: 6.5% gross rental yield
Boston: 6.6% gross rental yield
South West: 5.6% average gross yield
Plymouth: 6.4% gross rental yield
Gloucester: 6.8% gross rental yield
Swindon: 6.3% gross rental yield
South East: 5.6% average gross yield
Southampton: 6.6% gross rental yield
Gosport: 6.46% gross rental yield
Portsmouth: 6.45% gross rental yield
East of England: 5.6% average gross yield
Great Yarmouth: 6.4% gross rental yield
Peterborough: 6.24% gross rental yield
Fenland: 6.17% gross rental yield
London: 5.1% average gross yield
Barking and Dagenham: 6.22% gross rental yield
Newham: 6% gross rental yield
Bexley: 5.8% gross rental yield
Ready to find your dream home?
Search more than half a million properties for sale, from brand new homes to period homes.
What’s the outlook for buy-to-let property investment in the UK?
Supply and demand are coming back into balance, but the unaffordability of home ownership is trapping people in private renting, which is keeping rental demand above pre-pandemic levels.
It’s positive that the number of homes for rent is steadily recovering. However, we don’t expect a surge of new investment activity by landlords to accelerate the supply of homes for rent.
Rental inflation remains on track to be 3% over 2025. Encouraging new investment and growing the supply of homes for rent is the only long-term solution to easing the pressure on renters across Britain.
The outlook for buy-to-let investment remains closely tied to house prices, which are projected to experience modest growth in 2025. With rents generally rising at a slower pace than house prices, gross rental yields are expected to stabilise or see a slight increase, depending on regional dynamics and investor strategies.
What is rental yield?
Rental yield is the amount of money you make from a rental property each year against the cost of purchasing and running it. It’s always expressed as a percentage.
The gross yield only takes the cost of the property and the rental income into account.
The net rental yield, on the other hand, considers the extra costs of running the property, like maintenance and property management.
To figure out the best investment property for you, it’s worth looking at both of these yields as well as other factors.
Why is rental yield important?
Before you jump into buying a property to rent out, you've got to figure out if it’s a worthwhile venture.
If your rental income doesn't cover your costs, or you're just breaking even, unexpected expenses like fixing a broken boiler or a leaky roof can impact your finances.
So looking at the potential rental yield will help you do the maths and make sure it’s a good investment.
What else to think about with a buy-to-let property
There’s more to choosing a good buy-to-let property than just the rental yield.
You could buy a property with a strong yield, but if house prices aren’t rising or you can’t find tenants, it might not be the best investment.
House price trends
Get a feel for house price growth to see if the property is likely to rise in value. Look at historic sale prices for individual properties as well as value increases for the postcode and local area.
The cost of a buy-to-let mortgage
At the same time, you need to think about the costs of taking out a buy-to-let mortgage and all the other associated costs of running a rental property.
Tenant demand
It also helps to understand what tenant demand is like in the area and what sort of properties they’re looking for.
Speak to a letting agent to find out what’s happening in the local rental market. They’ll be able to share what tenants are looking for and which properties could be a strong buy-to-let investment.
How to work out your gross rental yield
Let’s say you want to buy a property worth £200,000. You plan to charge £1,000 per month in rent, which works out to £12,000 per year. Divide 12,000 by 200,000, then multiply by 100. That equals a gross yield of 6%.
(Annual rent / property value) x 100 = gross rental yield
How to work out your net rental yield
To work out your net rental yield, you need to take your extra costs off your annual rental income.
So add up the amount of money you think you’ll spend over the year. This will include paying the mortgage, agency fees, property maintenance, and any costs you might incur to keep up with regulations.
Then deduct these costs from your annual rental income, and do the same sum from there.
[(Annual rent - annual costs) / property value] x 100 = net rental yield
Let’s say you’re buying the same £200,000 property and charging the same £12,000 per year in rent.
But you’re spending £300 on maintenance and agency fees, which comes to £3,600 over the year.
That means your net rental yield for this property is 4.2%.
Want to stay in the know?
Sign up and be the first to hear about the latest property news.
