What Rental Yield Should You Aim For on a UK Buy-to-Let?
6-8% gross is the working benchmark most experienced landlords target — but location changes the answer dramatically. Here's how we think about yield on our own deals.
Quick answer: Most experienced UK landlords target a gross yield of 6-8%, though what counts as "good" depends heavily on location — sub-4% is common in prime London, while 8-10%+ is achievable in parts of the North West and North East. Net yield, after costs, is usually 2-4 percentage points lower than gross.
What's a "Good" Gross Yield in 2026?
There's no single correct number, but as a working benchmark: below 4% is typically capital-growth-led (you're accepting weak cashflow for expected appreciation), 5-7% is a reasonable balance of income and growth, and above 8% usually means you're either in a lower-value area, taking on more management intensity (HMOs, short-lets), or both.
Gross Yield vs Net Yield: Why the Gap Matters
Gross yield is just annual rent divided by purchase price — it ignores mortgage costs, maintenance, insurance, service charges, letting agent fees, and voids. Two properties advertised at the same "7% yield" can have very different actual cashflow once you strip out costs, which is why we always model net yield and cash-on-cash return, not just the headline gross number, before valuing a deal.
How Does Location Change the Answer?
Yield and capital growth are usually inversely related across UK regions: London and the South East have historically delivered stronger capital growth but weaker yields, while the North West, North East, and parts of the Midlands offer higher yields on lower purchase prices, with more modest (though currently accelerating in several cities) capital growth. Neither is objectively "better" — it depends on whether you need income now or are building for a longer-term exit.
What Yield Do We Target on Our Own Deals?
Because our model is BRRR-based — refurbish, refinance, then hold for rental income — we underwrite every acquisition against both a minimum net yield and an interest coverage ratio (ICR) stress test, so the deal still works if mortgage rates move against us. A deal that only works at today's rates isn't one we'll do.
Check Your Own Numbers
Our rental yield calculator works out gross yield, net yield after realistic running costs, cash-on-cash return on your deposit, and an ICR stress test in one place, so you can compare deals on the same basis rather than the headline number an agent quotes you.