Rental Yield Calculator UK
Calculate gross and net rental yield for buy-to-let properties
Annual Costs
Frequently Asked Questions
What is a good rental yield in the UK?
Generally, a good rental yield is above 5-6% for BTL. Properties in high-demand areas like Manchester, Liverpool, and student cities often achieve 7-10% yields, while London properties typically yield 3-5%.
What is the difference between gross and net yield?
Gross yield is annual rent divided by property price. Net yield subtracts all running costs (mortgage, maintenance, insurance, management fees, voids) from annual income, giving a more accurate picture of actual returns.
How do I calculate yield on an HMO?
For HMOs, calculate the total annual rent from all rooms, then divide by the total investment (property price plus any refurbishment costs). HMOs typically achieve 8-15% gross yields due to higher room rents.
What costs reduce net rental yield?
Key costs include: mortgage payments, buildings insurance, landlord insurance, maintenance (1% of property value recommended), letting agent fees (8-12% of rent), void periods, and leasehold ground rent/service charges.
What is the average rental yield by UK region?
Northern cities like Liverpool (8-10%), Manchester (6-8%), and Sheffield (6-8%) typically offer highest yields. London and the South East offer lower yields (3-5%) but stronger capital growth potential.
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