Rental Yield Calculator

What counts as a good rental yield?

Gross yield is annual rent divided by purchase price. Net yield subtracts running costs — letting agent fees (typically 8–12% of rent), insurance, maintenance and void periods — and is the number that actually matters. Most UK landlords target a gross yield of 5–8%; higher yields are typically found in northern cities, lower in London where capital growth does more of the work.

Remember the 5% additional-property stamp duty surcharge when calculating your true purchase cost, and that mortgage interest relief for individual landlords is restricted to a 20% basic-rate credit.