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
Across the UK, average gross rental yields have sat broadly in the mid-single digits in recent years, with around 5% to 6% common and anything above 6% generally seen as strong. 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 but often stronger capital growth. As a rough guide:
- Parts of the North of England and central Scotland have historically shown some of the highest gross yields in the UK, often in the 7% to 9% range in the right streets.
- The South and the most expensive cities tend to show lower yields, sometimes below 4%, with investors there relying more on the property rising in value.
These ranges move with the market. Always 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.
Common questions
What is a good rental yield in the UK?
As a rough guide, a gross yield of around 6% to 8% is often considered solid for UK buy-to-let, though it varies widely by region. Northern cities and parts of Scotland typically offer higher yields than the South East. Always 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.
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