What is a good rental yield in the UK?

A gross rental yield of 6% or above is generally considered good for a UK buy-to-let property. Yields vary significantly by location — northern cities like Liverpool, Manchester and Leeds often see yields of 7–9%, while London and the South East typically offer 3–5%. DealFlow AI flags any property yielding below 4% as a potential concern.

How do I calculate cash flow on a buy-to-let property?

Buy-to-let cash flow is your monthly rent minus all costs: mortgage payments, letting agent fees (typically 10–15%), maintenance allowance (around 1% of property value per year), insurance, and any void periods. DealFlow AI calculates all of this automatically when you paste a Rightmove link.

What EPC rating do I need to legally rent a property in the UK?

In England and Wales, a property must have a minimum EPC rating of E to be legally let. The government has proposed raising this to C for new tenancies, though this has been delayed. DealFlow AI automatically flags F and G rated properties as unlettable and highlights any EPC compliance risk.

How much stamp duty do I pay on a buy-to-let property?

Buy-to-let investors pay standard Stamp Duty Land Tax (SDLT) plus a 3% surcharge on each band. For example, on a £200,000 property in 2025 a BTL investor would pay approximately £7,500. DealFlow AI calculates your exact stamp duty figure automatically based on the asking price.

How do I know if a property deal is worth buying?

A good buy-to-let deal typically has: a gross yield above 6%, positive monthly cash flow after all costs, an EPC rating of D or above, no major planning issues nearby, and a strong local rental demand. DealFlow AI analyses all of these factors instantly and gives a clear BUY, MAYBE, or AVOID verdict scored out of 100.

Is DealFlow AI free to use?

Yes. DealFlow AI is completely free to use with no account required. You get 5 property analyses per day on the free tier, including the full AI verdict, yield calculation, EPC check, stamp duty figure, mortgage cost, and cash flow estimate.

What is the difference between gross yield and net yield?

Gross yield is annual rent divided by property price — it ignores all costs. Net yield deducts all costs (mortgage interest, letting agent fees, maintenance, insurance, void periods) before dividing by property price. Net yield is a more accurate picture of actual returns. Expect net yield to be 1.5–3 percentage points lower than gross yield.

How do I calculate buy-to-let cash flow?

Monthly cash flow = Monthly rent − Monthly mortgage payment − Letting agent fee (≈10% of rent) − Monthly maintenance allowance (≈0.8% of property value ÷ 12) − Insurance (≈£17/month) − Void allowance (≈1 month rent ÷ 12). A positive figure means the property generates income. A negative figure means it costs you money every month.

What buy-to-let mortgage rate should I use in my calculations?

As of 2026, buy-to-let mortgage rates in the UK typically range from 4.5% to 6.5% depending on LTV, lender and product term. Use 5.5% as a conservative benchmark for initial calculations. Most BTL lenders require rental income to cover at least 125–145% of the monthly mortgage payment at a stressed rate of 5.5%.

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The Buy-to-Let Calculations That Matter

1. Gross Rental Yield

Gross yield (%) = (Annual rent ÷ Purchase price) × 100

Example: £900/month rent × 12 = £10,800 annual rent. On a £150,000 property: (£10,800 ÷ £150,000) × 100 = 7.2% gross yield.

✓ Good: 6%+⚠ Marginal: 4–6%✗ Poor: below 4%

2. Net Rental Yield

Net yield (%) = ((Annual rent − Annual costs) ÷ Purchase price) × 100

Typical annual costs on a £150,000 BTL property: letting agent (£1,080) + maintenance (£1,500) + insurance (£200) + void allowance (£900) = £3,680. Net yield: ((£10,800 − £3,680) ÷ £150,000) × 100 = 4.75% net yield.

Net yield is typically 1.5–3 percentage points below gross yield. It excludes mortgage payments (those affect cash flow, not yield).

3. Monthly Cash Flow

Cash flow = Monthly rent − Mortgage − Agent fee − Maintenance − Insurance − Void allowance

Monthly rent: £900

Mortgage (75% LTV at 5.5% interest-only): −£516

Letting agent (10%): −£90

Maintenance (1% p.a. ÷ 12): −£125

Insurance: −£17

Void allowance (4 weeks ÷ 12): −£69

Monthly cash flow: +£83/month

4. Stamp Duty (Buy-to-Let)

Property Price	SDLT (Primary)	+3% BTL Surcharge	Total
£100,000	£0	£3,000	£3,000
£150,000	£500	£4,500	£5,000
£200,000	£1,500	£6,000	£7,500
£300,000	£5,000	£9,000	£14,000
£400,000	£10,000	£12,000	£22,000

Figures are approximate. Rates apply in England and Northern Ireland. DealFlow AI calculates the exact SDLT figure for any property automatically.

Real Buy-to-Let Calculation Examples

How the numbers play out across different UK markets:

£150,000 terraced house · Manchester

BUY

Price

£150,000

Est. Rent

£900/mo

Gross Yield

7.2%

Cash Flow

+£156/mo

Stamp duty: £5,500 · Assumes 75% LTV mortgage at 5.5%

£280,000 flat · Bristol

AVOID

Price

£280,000

Est. Rent

£1,200/mo

Gross Yield

5.1%

Cash Flow

−£84/mo

Stamp duty: £12,400 · Assumes 75% LTV mortgage at 5.5%

£185,000 semi-detached · Leeds

MAYBE

Price

£185,000

Est. Rent

£1,050/mo

Gross Yield

6.8%

Cash Flow

+£78/mo

Stamp duty: £7,050 · Assumes 75% LTV mortgage at 5.5%

What Affects Buy-to-Let Yield in the UK?

Location

Northern cities (Liverpool, Bradford, Sheffield) typically yield 7–9%. London and the South East yield 3–5%. The same money buys more yield further north.

Property type

Terraced houses and HMOs typically yield more than flats. New-build flats often have high service charges that destroy net yield.

EPC rating

Properties rated F or G cannot legally be let. A poor EPC can require £5,000–£20,000 of improvement works before you can rent it out.

Mortgage rate

Each 1% rise in mortgage rates reduces monthly cash flow by roughly £62 on a £150,000 interest-only loan. Rate sensitivity is the biggest risk in the current market.

Letting agent fees

Full management typically costs 10–15% of monthly rent. Self-managing saves this cost but adds time and legal responsibility.

Void periods

A typical rental property will be empty for 3–5 weeks per year. Budget for this — it reduces effective annual income by around 6–10%.

Frequently Asked Questions

How do I calculate buy-to-let yield?

Gross yield = (Annual rent ÷ Purchase price) × 100. For example: £800/month × 12 = £9,600 annual rent. On a £150,000 property: (£9,600 ÷ £150,000) × 100 = 6.4% gross yield.

What is the difference between gross and net yield?

Gross yield ignores costs. Net yield deducts letting agent fees (~10%), maintenance (~1% p.a.), insurance and void allowance. Net yield is typically 1.5–3 percentage points lower than gross yield.

What is a good buy-to-let yield in the UK?

6% gross or above is the general minimum target. Northern cities like Liverpool, Leeds and Manchester regularly offer 7–9%. London typically yields 3–5%.

How much stamp duty do I pay on a buy-to-let?

Standard SDLT rates plus a 3% surcharge. On £150,000: approximately £5,000. On £250,000: approximately £10,000. DealFlow AI calculates the exact figure automatically.

Is there a free buy-to-let calculator that works with Rightmove?

Yes — DealFlow AI reads Rightmove listings directly. Paste any Rightmove URL for an automatic calculation of yield, cash flow, mortgage costs, EPC rating and stamp duty. Free, 5 times per day, no account needed.

What mortgage rate should I use in my calculations?

Use 5.5% as a conservative benchmark in 2026. Most BTL lenders require rental income to cover 125–145% of the monthly mortgage payment at a stressed rate of 5.5%.

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