Rental yield is one of the first numbers any prospective landlord looks at - but it's also one of the most commonly misunderstood. A headline "8% yield" advertised on a property listing is almost always the gross yield, calculated before any costs are taken into account. Once letting agent fees, insurance, maintenance, void periods, and - for mortgaged properties - Section 24's effect on tax are factored in, the real, net return can look very different.
What counts as a "good" yield also varies enormously by region. Areas with lower property prices, such as parts of the North East and North West, often show higher gross yields than London and the South East - but that doesn't automatically make them better investments once you weigh in capital growth potential, tenant demand, and void risk.
This guide explains the difference between gross and net yield in practical terms, what realistic benchmarks look like across different parts of the UK in 2026, and why yield is only one part of the picture when judging whether a buy-to-let makes sense.
The full guide will cover: