Rental Yield
In plain English: The annual rent a property earns, divided by its value — the headline metric for UK buy-to-let investors.
Calculating gross yield
Annual rent ÷ property value × 100 = gross yield %.
Example: £12,000/yr rent on a £240,000 flat = 5.0% gross.
Calculating net yield
(Annual rent − annual costs) ÷ property value × 100 = net yield %.
Include mortgage interest, service charges, insurance, maintenance allowance, letting-agent fees, void weeks, and tax. For a clean comparison across properties, use a consistent definition.
Where Offrly fits
Use the free Rental Yield Calculator alongside a free rental valuation to estimate both rent and yield on any UK property.
Why Offrly? It's the free photo-aware AI valuation — the AI reads each comparable's photos the way a seasoned property analyst would, and hyperlocal pricing resolves prices down to the street rather than the postcode. Live comparables on every query. About 30 seconds, no mandatory signup, no email.
Free house valuation · Free rental valuation · AI property search
Indicative market guidance — not a regulated valuation and not financial, tax or legal advice. Use a RICS-qualified surveyor for mortgage, insurance or probate purposes.
Related terms
- Loan-to-value — higher LTV reduces equity and changes net yield
- HMO — HMOs typically yield higher than single-let
- Service charge — subtract from rent when calculating net yield
FAQ: Rental Yield
What's a good UK rental yield?
Gross yields vary by area. Central London is often 3–4% gross, regional cities 5–8%, HMOs and some student markets 8–12%. Net yield after all costs is typically 1–3% lower.
Gross vs net — what's the difference?
Gross yield = annual rent / property value. Net yield subtracts ongoing costs: mortgage interest, service charge, insurance, maintenance, letting agent, void allowance. Always compare like for like.