Rental yield is the annual rent as a percentage of the property price — the headline number landlords use to compare deals. Gross yield ignores costs; net yield subtracts running costs (management, insurance, maintenance, void periods) for a truer picture of the return before mortgage and tax.
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Frequently asked questions
What is a good rental yield?
Many UK landlords target a gross yield of 5 to 8 percent, but it varies hugely by region. Higher yields often come with higher risk or more management.
Should I use gross or net yield?
Net yield is more honest because it reflects real running costs. Use gross for a quick comparison and net before you actually commit.