UK Buy-to-Let Rental Yield Calculator
Calculate gross and net rental yield on a UK buy-to-let property after mortgage interest, management, maintenance and void periods.
- London Gross Yield
- 4.2%
- Average
- UK Gross Yield
- 5.6%
- Average
- Void Period
- 4%
- Annual allowance
Formula & Statutory Rule
Formula
gross_yield = annual_rent / price × 100
Statutory Rule
net_yield = (annual_rent − costs) / price × 100; void_allowance = 4%Regional Benchmark Reference
| Jurisdiction / Tier | Rate or Limit | Statutory Note |
|---|---|---|
| London | 4.2% | Gross |
| UK average | 5.6% | Gross |
| Void allowance | 4% | Annual |
Frequently Asked Questions
What is a good rental yield in the UK?
Gross yields average around 5.6% nationally, with London lower at about 4.2%.
What is the difference between gross and net yield?
Gross yield ignores costs; net yield deducts mortgage interest, management, maintenance and voids.
How do void periods affect yield?
Voids reduce effective income; a 4% allowance is a common planning assumption.
Does Section 24 affect yield?
Section 24 restricts interest relief, which lowers net returns for higher-rate taxpayers.