What Is a Good Rental Yield in the UK?
Short answer: a gross rental yield of 6% or above is generally considered good for a UK buy-to-let in 2026. Below 4% a property rarely covers its own costs once mortgage payments are included; above 8% you're usually looking at a strong cash-flow investment — or a signal worth double-checking.
But the honest answer is that "good" depends almost entirely on where you're buying and what you want the property to do. This guide covers the benchmarks, the gross vs net distinction that catches most beginners out, and how to check any listing's yield in seconds.
Rental yield benchmarks by region
Yields are a function of the rent-to-price ratio, and that ratio varies enormously across the UK. As a rule of thumb for 2026:
| Region / city type | Typical gross yield | What "good" looks like |
|---|---|---|
| London & South East | 3–5% | 5%+ |
| Midlands (Birmingham, Nottingham, Leicester) | 5–7% | 6.5%+ |
| North West (Liverpool, Manchester, Bolton) | 6–9% | 7%+ |
| North East (Sunderland, Middlesbrough, Hartlepool) | 7–10% | 8%+ |
| Yorkshire (Leeds, Sheffield, Bradford) | 6–9% | 7%+ |
| Scotland (Glasgow, Dundee, Aberdeen) | 6–9% | 7%+ |
| Wales (Cardiff, Swansea) | 5.5–7.5% | 6.5%+ |
See our city-by-city breakdowns for current figures — for example Liverpool, Manchester, Sunderland, Bradford and London — or browse every city guide.
Gross vs net yield — the difference that matters
Gross yield is annual rent divided by purchase price. It's the number agents quote because it's the biggest one. Net yield deducts running costs — letting agent fees (typically 10–15% of rent), maintenance (budget ~1% of the property's value per year), landlord insurance and void periods — and is usually 1.5–3 percentage points lower.
A "7% yield" that nets to 4.8% before mortgage costs is a very different investment from one that nets to 6%. Always run both numbers — our yield calculation guide walks through the formulas with worked examples, and the buy-to-let calculator does it automatically.
When a high yield is a warning sign
Yield compensates for risk. A street where terraces yield 10%+ usually comes with one or more of: weak tenant demand, higher arrears and void risk, limited capital growth prospects, or properties that need work (check the EPC — F and G rated homes are currently illegal to let in England and Wales). None of these make a deal automatically bad, but the yield alone doesn't make it good either.
That's why a sensible check covers yield and cash flow and compliance and local demand together. DealFlow AI runs all four on any Rightmove listing and explains its reasoning, so you can see whether an 9% headline yield is genuinely strong or priced for a reason.
Frequently Asked Questions
Is a 5% rental yield good in the UK?
It depends where. In London or the South East, 5% gross is above average and often acceptable if you also expect capital growth. In northern cities like Liverpool, Manchester or Sunderland — where 7–9% is achievable — a 5% yield usually means you're overpaying or the rent estimate is conservative.
What is a realistic net rental yield?
Net yield typically runs 1.5–3 percentage points below gross once you deduct letting agent fees (10–15% of rent), maintenance (roughly 1% of property value per year), insurance and void periods. A property with a 7% gross yield often nets out around 4.5–5.5% before mortgage costs.
Is rental yield more important than capital growth?
Neither is universally more important — they suit different strategies. Yield pays your bills every month and keeps the property self-financing; capital growth builds long-term wealth. High-yield areas (often northern cities) tend to see slower price growth, while low-yield areas (London, commuter belt) historically grow faster. Most sustainable portfolios are bought to be cash-flow positive first.
How do I check the yield on a Rightmove listing quickly?
Paste the Rightmove URL into DealFlow AI. It estimates local rent from comparables, calculates the gross yield, checks the EPC rating, and gives a BUY / MAYBE / AVOID verdict — free, with no account needed.
Check any listing's yield in seconds
Paste a Rightmove link into DealFlow AI and get the gross yield, estimated rent, EPC check and a clear BUY / MAYBE / AVOID verdict — free, no account needed.
Analyse a property free →