Quick answer: gross rental yield is the yearly rent divided by the purchase price, times 100. A £220,000 property let for £1,200 a month has a gross yield of 6.55%. Using ONS figures for August 2026 rents and July 2026 house prices, our calculation gives an average UK gross yield of about 6.2%.
Rental yield calculator
Choose how you would let the property, then enter the price, the rent, the fees and your other costs. Yields update as you type.
Costs for net yield
Maintenance and replacements reserve: money set aside each year for repairs and for replacing things like boilers, carpets, kitchens and furniture. Other yearly costs: insurance, service charge, ground rent, and for short lets cleaning, bills and council tax or business rates. Buying costs: stamp duty, legal fees and survey. Platform fees vary by platform and fee setting, so see our guide to Airbnb host fees. Net yield leaves mortgage interest out so properties can be compared whatever the financing. Add a mortgage below to see your cash flow.
Add a mortgage (interest only)
Return on cash put in is the yearly cash flow after mortgage interest, divided by the deposit plus buying costs. It leaves out income tax and any change in the property's value.
Short-let results include only the costs entered. Cleaning, bills and council tax or business rates belong in other yearly costs.
How do you calculate rental yield?
Gross yield = yearly rent ÷ purchase price × 100.
Net yield = (rent actually received − management fee − platform fee − maintenance reserve − other yearly costs) ÷ (purchase price + buying costs) × 100.
| Worked example | Figure |
|---|---|
| Purchase price | £220,000 |
| Rent, £1,200 a month | £14,400 a year |
| Gross yield | 6.55% |
| Rent received at 96% occupancy | £13,824 |
| 10% fee plus VAT, 5% maintenance reserve and £1,000 other costs | £3,350 a year |
| Buying costs | £6,000 |
| Net yield | 4.63% |
Example figures chosen to show the method, not market data.
What is the average rental yield in the UK?
We worked out these gross yields from the averages the ONS published on 16 September 2026: private rent for August 2026 and house prices for July 2026 (ONS). Each yield is twelve months of the average rent divided by the average price.
| Area | Average monthly rent | Average house price | Gross yield |
|---|---|---|---|
| UK | £1,400 | £273,000 | 6.2% |
| England | £1,459 | £293,000 | 6.0% |
| Scotland | £1,013 | £196,000 | 6.2% |
| Northern Ireland | £874 | £202,000 | 5.2% |
| London | £2,332 | £569,000 | 4.9% |
| Wales | £846 | £215,000 | 4.7% |
Source: ONS, Private rent and house prices, UK: September 2026. Northern Ireland rent is for June 2026 and price for April to June 2026. Average rents cover all rented homes and average prices cover all homes sold, so these yields are a broad guide, not the yield on any one property.
Where are rental yields highest?
On these ONS averages, Scotland has the highest gross yield of the four nations at 6.2% and Wales the lowest at 4.7%. London's yield is 4.9%: rent there is the highest in the UK at £2,332 a month, but the average price is £569,000 (ONS). The ONS says the North East had the lowest average rent of the English regions, at £788 a month in August 2026.
What could your home earn?
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What goes into net yield?
Net yield uses the yearly costs and buying costs you enter in the calculator, so the result is only as complete as those figures. Buying costs include stamp duty, so our buy-to-let stamp duty calculator gives you that figure.
Can a short let give a higher yield than a long let?
The calculator lets you compare both on the same costs basis. Switch the calculator to short let and enter a nightly rate and the share of nights booked. For a figure based on your own street rather than a guess, use our free valuation form above.
Frequently asked questions
How do you calculate rental yield?
Gross rental yield is the yearly rent divided by the purchase price, times 100. A property bought for £220,000 and let at £1,200 a month (£14,400 a year) has a gross yield of 6.55%.
What is the difference between gross and net yield?
Gross yield uses the rent before any costs. Net yield allows for occupancy, takes off fees and other yearly costs, then divides by the price plus buying costs. With 96% occupancy, a 10% fee plus VAT, a 5% maintenance reserve, £1,000 of other costs and £6,000 of buying costs, the £220,000 example falls from 6.55% gross to 4.63% net.
What is the average rental yield in the UK?
About 6.2% gross, using ONS figures. The ONS put the average UK private rent at £1,400 a month in August 2026 and the average house price at £273,000 in July 2026. Twelve months of that rent divided by that price gives 6.2%.
Where in the UK are rental yields highest?
Of the UK nations, Scotland has the highest gross yield on ONS averages, at 6.2%, and Wales the lowest, at 4.7%. London is 4.9% because prices there are much higher relative to rent.
Should mortgage interest be included in rental yield?
This calculator leaves mortgage interest out, so the yield compares properties whatever the financing. To see the monthly payment and how much the rent lets you borrow, use our buy-to-let mortgage calculator.
How do I work out the yield on a short let?
Choose short let in the calculator and enter the average nightly rate and your expected occupancy, the share of nights booked. Then enter the management fee, the platform fee and your other yearly costs to see net yield.
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This is general information, not mortgage, financial or tax advice. The calculator shows an illustration using published rules and the figures you enter. Speak to an FCA-authorised mortgage broker or a tax adviser before you act.