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 a hyperlocal regression resolves prices down to the street rather than the postcode. Live comparables on every query. About 30 seconds, no 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
Put the term into practice
Get a free UK house or rental valuation, or search live listings in plain English.
Open Offrly →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.