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

A gross rental yield above 5% is generally considered strong for UK buy-to-let. The national average is approximately 4.5%. However, "good" depends on your strategy: high-yield northern cities often offer 6-8% gross but lower capital growth, while southern cities may yield 3-4% gross with stronger price appreciation. Net yield (after costs) is typically 1.5-2.5% lower than gross.

How is gross rental yield calculated?

Gross rental yield = (annual rent ÷ property price) × 100. For example, a property renting at £800/month (£9,600/year) with an asking price of £160,000 has a gross yield of 6.0%. This does not account for costs such as void periods, maintenance, insurance, management fees, or mortgage interest.

Which UK cities have the highest rental yields?

Based on current data, the top 5 cities by gross yield are: 1. Hull (15.3%), 2. Bolton (13.1%), 3. Preston (12.6%), 4. Sunderland (11.4%), 5. Stirling (10.4%). Northern and Midlands cities consistently outperform southern England on yield, though London and the South East offer stronger capital growth potential.

Why do northern cities have higher yields than London?

Rental yields are higher in northern cities because property prices are significantly lower while rents — though also lower in absolute terms — haven't fallen proportionally. A £100,000 property in the North might rent for £500-600/month (6-7% yield), while a £400,000 London property might rent for £1,500/month (4.5% yield). The price-to-rent ratio is more favourable outside London.

Should I invest based on yield alone?

No. Yield is one factor alongside capital growth potential, tenant demand, void rates, local regulations (HMO licensing, selective licensing), property condition, and your investment timeframe. A 8% yield in an area with declining property values and high void rates may underperform a 5% yield in a growing city with strong demand. Always consider the full picture.

How often is this yield data updated?

Rental and price data is sourced from PropertyData.co.uk, which aggregates current listing data from major property portals. Our town pages are updated periodically to reflect the latest market conditions. Yields fluctuate as both rents and property prices change.

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

A gross rental yield above 5% is generally considered strong for UK buy-to-let. The national average is approximately 4.5%. However, "good" depends on your strategy: high-yield northern cities often offer 6-8% gross but lower capital growth, while southern cities may yield 3-4% gross with stronger price appreciation. Net yield (after costs) is typically 1.5-2.5% lower than gross.

How is gross rental yield calculated?

Gross rental yield = (annual rent ÷ property price) × 100. For example, a property renting at £800/month (£9,600/year) with an asking price of £160,000 has a gross yield of 6.0%. This does not account for costs such as void periods, maintenance, insurance, management fees, or mortgage interest.

Which UK cities have the highest rental yields?

Based on current data, the top 5 cities by gross yield are: 1. Hull (15.3%), 2. Bolton (13.1%), 3. Preston (12.6%), 4. Sunderland (11.4%), 5. Stirling (10.4%). Northern and Midlands cities consistently outperform southern England on yield, though London and the South East offer stronger capital growth potential.

Why do northern cities have higher yields than London?

Rental yields are higher in northern cities because property prices are significantly lower while rents — though also lower in absolute terms — haven't fallen proportionally. A £100,000 property in the North might rent for £500-600/month (6-7% yield), while a £400,000 London property might rent for £1,500/month (4.5% yield). The price-to-rent ratio is more favourable outside London.

Should I invest based on yield alone?

No. Yield is one factor alongside capital growth potential, tenant demand, void rates, local regulations (HMO licensing, selective licensing), property condition, and your investment timeframe. A 8% yield in an area with declining property values and high void rates may underperform a 5% yield in a growing city with strong demand. Always consider the full picture.

How often is this yield data updated?

Rental and price data is sourced from PropertyData.co.uk, which aggregates current listing data from major property portals. Our town pages are updated periodically to reflect the latest market conditions. Yields fluctuate as both rents and property prices change.

Best Rental Yields in the UK 2026 — 48 Cities Ranked

UK Rental Yield Rankings — All 48 Cities

Cities ranked by their highest-yielding bedroom type. Click any city to see the full investment guide with detailed rent and price data.

#	City	Region	Best Yield	Best Type	2-Bed Rent	2-Bed Price	2-Bed Yield
1	Hull	Yorkshire and the Humber	15.3%	4-bed	£763/mo	£82,090	11.2%
2	Bolton	North West	13.1%	1-bed	£906/mo	£213,395	5.1%
3	Preston	North West	12.6%	1-bed	£845/mo	£121,500	8.3%
4	Sunderland	North East	11.4%	1-bed	£706/mo	£127,495	6.6%
5	Stirling	Scotland	10.4%	1-bed	£958/mo	£168,776	6.8%
6	Manchester	Greater Manchester	10.0%	1-bed	£1,564/mo	£272,295	6.9%
7	Coventry	West Midlands	10.0%	1-bed	£936/mo	£146,000	7.7%
8	Wakefield	Yorkshire and the Humber	9.9%	1-bed	£776/mo	£157,250	5.9%
9	Stoke-on-Trent	West Midlands	9.7%	4-bed	£724/mo	£111,990	7.8%
10	Doncaster	Yorkshire and the Humber	9.7%	2-bed	£728/mo	£90,295	9.7%
11	Birmingham	West Midlands	9.5%	2-bed	£1,239/mo	£156,690	9.5%
12	Bradford	Yorkshire and the Humber	9.3%	1-bed	£849/mo	£127,685	8.0%
13	Newcastle	Tyne and Wear	9.3%	1-bed	£1,131/mo	£168,995	8.0%
14	Blackpool	North West	9.0%	1-bed	£719/mo	£97,895	8.8%
15	Middlesbrough	North East	8.8%	1-bed	£711/mo	£102,245	8.3%
16	Peterborough	East of England	8.7%	1-bed	£945/mo	£151,000	7.5%
17	Sheffield	South Yorkshire	8.4%	1-bed	£875/mo	£141,995	7.4%
18	Wolverhampton	West Midlands	8.2%	1-bed	£914/mo	£142,989	7.7%
19	Luton	East of England	8.2%	1-bed	£1,261/mo	£227,500	6.7%
20	Southampton	South East	7.9%	1-bed	£1,187/mo	£185,500	7.7%
21	Bristol	South West England	7.8%	3-bed	£1,530/mo	£270,900	6.8%
22	Glasgow	Scotland	7.7%	1-bed	£1,096/mo	£196,300	6.7%
23	Ipswich	East of England	7.7%	1-bed	£949/mo	£161,500	7.1%
24	Exeter	South West	7.5%	1-bed	£1,339/mo	£303,000	5.3%
25	Chester	North West	7.5%	1-bed	£1,088/mo	£227,000	5.8%
26	London	Greater London	7.3%	1-bed	£3,406/mo	£821,850	5.0%
27	Milton Keynes	South East	7.2%	1-bed	£1,417/mo	£280,500	6.1%
28	Plymouth	South West	7.2%	1-bed	£949/mo	£190,995	6.0%
29	Leeds	West Yorkshire	7.2%	1-bed	£1,023/mo	£254,985	4.8%
30	Liverpool	Merseyside	7.2%	1-bed	£1,109/mo	£240,485	5.5%
31	Edinburgh	Scotland	7.1%	1-bed	£1,439/mo	£259,400	6.7%
32	Norwich	East of England	7.0%	1-bed	£1,018/mo	£205,000	6.0%
33	Derby	East Midlands	7.0%	2-bed	£1,400/mo	£239,499	7.0%
34	Lincoln	East Midlands	7.0%	1-bed	£906/mo	£212,000	5.1%
35	Portsmouth	South East	7.0%	1-bed	£1,270/mo	£232,204	6.6%
36	Reading	South East	6.8%	1-bed	£1,361/mo	£268,000	6.1%
37	Northampton	East Midlands	6.8%	1-bed	£962/mo	£243,494	4.7%
38	Slough	South East	6.8%	1-bed	£1,772/mo	£362,735	5.9%
39	Leicester	East Midlands	6.7%	1-bed	£888/mo	£211,000	5.1%
40	Salford	North West	6.6%	2-bed	£1,014/mo	£183,750	6.6%
41	Bournemouth	South West	6.6%	1-bed	£1,313/mo	£267,500	5.9%
42	Cambridge	East of England	6.5%	1-bed	£1,057/mo	£233,000	5.4%
43	Oxford	South East	6.4%	1-bed	£2,314/mo	£486,500	5.7%
44	Watford	East of England	6.3%	1-bed	£1,759/mo	£365,500	5.8%
45	Brighton	South East	6.3%	1-bed	£1,525/mo	£335,000	5.5%
46	Nottingham	East Midlands	6.1%	1-bed	£806/mo	£197,490	4.9%
47	Bath	South West	5.8%	1-bed	£1,720/mo	£400,222	5.2%
48	York	Yorkshire and the Humber	5.5%	2-bed	£1,265/mo	£274,000	5.5%

Source: PropertyData.co.uk. Gross yield = (annual rent ÷ asking price) × 100. Based on current listing data.

Top 5 Highest-Yielding Cities

Yields by Region

East Midlands (5 cities, avg 6.7%)

Derby7.0%Lincoln7.0%Northampton6.8%Leicester6.7%Nottingham6.1%

East of England (6 cities, avg 7.4%)

Peterborough8.7%Luton8.2%Ipswich7.7%Norwich7.0%Cambridge6.5%Watford6.3%

Greater London (1 cities, avg 7.3%)

London7.3%

Greater Manchester (1 cities, avg 10.0%)

Manchester10.0%

Merseyside (1 cities, avg 7.2%)

Liverpool7.2%

North East (2 cities, avg 10.1%)

Sunderland11.4%Middlesbrough8.8%

North West (5 cities, avg 9.8%)

Bolton13.1%Preston12.6%Blackpool9.0%Chester7.5%Salford6.6%

Scotland (3 cities, avg 8.4%)

Stirling10.4%Glasgow7.7%Edinburgh7.1%

South East (7 cities, avg 6.9%)

Southampton7.9%Milton Keynes7.2%Portsmouth7.0%Reading6.8%Slough6.8%Oxford6.4%Brighton6.3%

South West (4 cities, avg 6.8%)

Exeter7.5%Plymouth7.2%Bournemouth6.6%Bath5.8%

South West England (1 cities, avg 7.8%)

Bristol7.8%

South Yorkshire (1 cities, avg 8.4%)

Sheffield8.4%

Tyne and Wear (1 cities, avg 9.3%)

Newcastle9.3%

West Midlands (4 cities, avg 9.4%)

Coventry10.0%Stoke-on-Trent9.7%Birmingham9.5%Wolverhampton8.2%

West Yorkshire (1 cities, avg 7.2%)

Leeds7.2%

Yorkshire and the Humber (5 cities, avg 9.9%)

Hull15.3%Wakefield9.9%Doncaster9.7%Bradford9.3%York5.5%

Frequently Asked Questions

Quick answers to the most common questions about this topic.

What is a good rental yield for buy-to-let in the UK?
How is gross rental yield calculated?
Which UK cities have the highest rental yields?
Why do northern cities have higher yields than London?
Should I invest based on yield alone?
How often is this yield data updated?

Track yields across your portfolio with ZenRent

Monitor rental income, calculate real-time yields, and stay MTD-compliant across all your properties. Start your 14-day free trial — no credit card required.

Start your free trial View pricing

Disclaimer: Yield figures are gross estimates based on current average asking prices and rents from PropertyData.co.uk. Actual yields depend on purchase price achieved, achievable rent, void periods, maintenance costs, and other factors. This does not constitute financial or investment advice. Always conduct your own due diligence.