UK Buy-to-Let Yield
Gross yield = annual rent ÷ property value. Net yield subtracts running costs.
Updated May 2026, using HMRC 2026/27 rates and current ONS / gov.uk figures.
Use the X-is-what-percent calculator: rent per year ÷ property value × 100. UK gross yields typically 4-7%; northern cities (Liverpool, Manchester) often higher than London. Net yields after Section 24 mortgage interest restriction, voids, maintenance and management can be 30-50% lower.
Worked examples
£800/mo (£9,600/yr) on a £150k property = 6.4% gross yield.
Same property, after 25% deduction for costs = ~4.8% net yield.
London 1-bed at £1,500/mo (£18k/yr) on £450k = 4.0% gross.
Frequently asked questions
What is Section 24?
Removed mortgage-interest deductibility for individual UK landlords (phased 2017-2020). Now individuals get a 20% tax credit instead, which costs higher-rate landlords significantly more in tax.
Are limited company structures better?
Often yes for higher-rate landlords — full mortgage interest deductibility, lower rate (CT), but offset by stamp duty and dividend tax on extraction. Speak to a qualified accountant or tax adviser.