It is the question every new investor asks: what yield should I be aiming for? The honest answer is that "good" depends on where you buy and what you want the property to do. But there are useful benchmarks, and knowing them stops you from either overpaying or chasing a number that comes with hidden problems.
The national picture
There is no official UK figure for rental yield. The benchmarks come from lenders and property portals, and they differ because each one measures a different set of properties. Paragon Bank's figures for April to June 2026, based on its own buy-to-let lending, put the average gross yield at 7.02%. Houses in multiple occupation lift that average, at 8.90%. Flats came in at 6.45% and terraced houses at 6.31%.
Those are gross figures, before costs, so the net return you keep is lower. Treat any benchmark as a starting point, not a target to force.
Yields are not the same everywhere
Yield broadly moves opposite to price. Cheaper areas tend to show higher yields. Expensive areas show lower yields, and investors there count more on the property rising in value. The mid-2026 figures show the spread:
- Wales, Scotland and the North East are at the top. Paragon recorded 8.87% in Wales and 7.97% in both Scotland and the North East. A separate analysis of Zoopla data by Landlord Resource, reported in August 2026, also put Scotland and the North East at 7.9%.
- London is at the bottom, at 5.58% on Paragon's figures and 5.1% on the Zoopla analysis. The South East is next lowest on Paragon's figures, at 6.48%.
These are regional averages and they move with the market. A single street can sit well above or below them, so check current figures for the specific area before you rely on them.
Why the highest yield is not always the best deal
A very high yield is sometimes the market pricing in a problem: weak demand, difficult tenancies, expensive maintenance, or a property type lenders dislike. A slightly lower yield in an area with strong, steady demand and easy reletting can pay you more reliably over ten years than a headline-grabbing number in a street that is hard to let.
How to judge a yield properly
- Compare gross to the regional norm to sense-check the price.
- Then work out the net yield after real costs, because that is what you keep.
- Finally ask what is driving it: strong rent, or a cheap price that reflects a problem?
A "good" yield is one that survives that third question. If the number is high and the area is genuinely in demand, you may have a deal. If the number is high only because the property is hard to let, you have a trap dressed as a bargain.
This guide is general market commentary, not investment advice. Yields are averages at the time of writing, not guarantees, and past performance is not a guide to future returns.
Common questions
What is a good rental yield in the UK?
There is no single number. In mid-2026, Paragon Bank's lending data put the average gross yield at about 7%, from about 5.6% in London to almost 9% in Wales. Compare a property with the average for its own region, then check the net yield, not just the gross.
Is a higher rental yield always better?
No. A very high yield can signal weaker capital growth, higher void risk or a more challenging area. Judge yield alongside demand, tenant quality and the prospects for the property's value.
We benchmark every property against its own area before it reaches an investor, so the yield you see is one we would buy ourselves. Let us find one that holds up.
Get in touch- The Negotiator, "HMOs push average landlord yields above 7%", 22 July 2026 (reports Paragon Bank's buy-to-let yield figures for April to June 2026)
- The Intermediary, "Sunderland records highest BTL yield in 2026, analysis finds", 5 August 2026 (Landlord Resource analysis of Zoopla data)
Checked on 2 October 2026.