Highest rental yields in the UK by region
A 2026 league table of average gross rental yields across 60 UK postcode areas, from the high-yield North East to low-yield prime London. Indicative regional benchmarks, with the method and sources set out in full.
The short answer
The strongest gross rental yields in the UK sit in the North East and parts of the North West, Yorkshire and Scotland — areas such as Middlesbrough / Teesside, Sunderland, Durham — where purchase prices are low relative to rents, pushing average gross yields to roughly 8.6% and HMO per-room yields into double digits.
The weakest yields are in prime central and west London, where high capital values compress income returns to around 2.5% gross. These are indicative regional benchmarks for comparing areas, not a substitute for a yield calculation on a specific property.
Highest yield areas
- 1.Middlesbrough / Teesside (TS)8.6%
- 2.Sunderland (SR)8.3%
- 3.Durham (DH)7.8%
- 4.Hull (HU)7.8%
- 5.Bradford (BD)7.3%
Lowest yield areas
- 1.Central London (WC)2.5%
- 2.Central / West London (W)2.5%
- 3.South-West London (SW)3%
- 4.City of London (EC)3%
- 5.North London (N)3.5%
Full league table
Average gross yield across single-let property types, ranked high to low. HMO column is indicative per-room gross yield before costs.
| # | Area | Region | Avg gross | HMO/room | Tier |
|---|---|---|---|---|---|
| 1 | TS | Middlesbrough / Teesside | 8.6% | 11.5% | Very High |
| 2 | SR | Sunderland | 8.3% | 11% | Very High |
| 3 | DH | Durham | 7.8% | 10.5% | High |
| 4 | HU | Hull | 7.8% | 10.5% | Very High |
| 5 | BD | Bradford | 7.3% | 10% | High |
| 6 | OL | Oldham | 7.3% | 10% | High |
| 7 | DD | Dundee | 7.3% | 10% | High |
| 8 | ST | Stoke-on-Trent | 7% | 9.5% | High |
| 9 | NE | Newcastle | 6.8% | 10% | High |
| 10 | L | Liverpool | 6.8% | 10% | High |
| 11 | BL | Bolton | 6.8% | 9.5% | High |
| 12 | WF | Wakefield | 6.8% | 9.5% | High |
| 13 | HD | Huddersfield | 6.5% | 9.5% | High |
| 14 | PR | Preston | 6.3% | 9% | High |
| 15 | G | Glasgow | 6.3% | 9% | High |
| 16 | BT | Northern Ireland | 6.3% | 9.5% | High |
| 17 | M | Manchester city | 5.8% | 9% | High |
| 18 | LS | Leeds | 5.8% | 8.5% | High |
| 19 | S | Sheffield | 5.8% | 8.5% | High |
| 20 | NG | Nottingham | 5.8% | 8.5% | High |
| 21 | WS | Walsall / Black Country | 5.8% | 8.5% | High |
| 22 | WV | Wolverhampton | 5.8% | 8.5% | High |
| 23 | SA | Swansea | 5.8% | 8.5% | High |
| 24 | NP | Newport | 5.8% | 8.5% | High |
| 25 | PE | Peterborough / Fens | 5.8% | 8% | High |
| 26 | B | Birmingham | 5.5% | 8% | High |
| 27 | CV | Coventry | 5.5% | 8.5% | High |
| 28 | DE | Derby | 5.5% | 8% | High |
| 29 | AB | Aberdeen | 5.3% | 7.5% | Moderate |
| 30 | CF | Cardiff | 5.3% | 8% | Moderate |
| 31 | LL | North Wales | 5.3% | 7.5% | Moderate |
| 32 | PL | Plymouth | 5.3% | 8% | High |
| 33 | NR | Norwich | 5.3% | 7.5% | Moderate |
| 34 | IP | Ipswich | 5.3% | 7.5% | Moderate |
| 35 | LE | Leicester | 5% | 7.5% | Moderate |
| 36 | EH | Edinburgh | 4.8% | 7.5% | Moderate |
| 37 | LD | Mid Wales (Llandrindod) | 4.8% | 7% | Moderate |
| 38 | SO | Southampton | 4.8% | 7.5% | Moderate |
| 39 | PO | Portsmouth | 4.8% | 7.5% | Moderate |
| 40 | EX | Exeter | 4.8% | 7.5% | Moderate |
| 41 | YO | York | 4.8% | 7.5% | Moderate |
| 42 | RG | Reading | 4.3% | 7% | Moderate |
| 43 | SL | Slough | 4.3% | 6.5% | Moderate |
| 44 | BH | Bournemouth / Christchurch / Poole | 4.3% | 7% | Moderate |
| 45 | BS | Bristol | 4.3% | 7% | Moderate |
| 46 | E | East London | 4% | 6% | Low |
| 47 | SE | South-East London | 4% | 6% | Low |
| 48 | GU | Guildford | 3.8% | 6% | Low |
| 49 | KT | Kingston / Surrey | 3.8% | 5.5% | Low |
| 50 | CR | Croydon | 3.8% | 5.5% | Low |
| 51 | OX | Oxford | 3.8% | 7% | Low |
| 52 | CB | Cambridge | 3.8% | 7% | Low |
| 53 | BA | Bath | 3.8% | 6% | Low |
| 54 | BN | Brighton | 3.8% | 6.5% | Low |
| 55 | NW | North-West London | 3.5% | 5.5% | Low |
| 56 | N | North London | 3.5% | 5.5% | Low |
| 57 | EC | City of London | 3% | 4.5% | Very Low |
| 58 | SW | South-West London | 3% | 4.5% | Very Low |
| 59 | W | Central / West London | 2.5% | 4.5% | Very Low |
| 60 | WC | Central London | 2.5% | 4.5% | Very Low |
Best areas for HMO yields
Per-room gross yields are typically the highest available, but come with licensing, management and (increasingly) Article 4 planning constraints. Check the HMO licensing rules for the specific council before committing.
Gross yield is not your return
Every figure here is gross yield: annual rent divided by purchase price. Your actual return is lower once you subtract letting and management fees, maintenance, void periods, insurance, ground rent or service charge, and tax. For a well-managed single let, net yield typically lands around 60 to 70% of gross.
Since the phasing-out of mortgage-interest relief under Section 24, higher-rate taxpayers holding in their own name feel that gap more sharply. Model the after-tax number before you buy.
Yields for a specific address
These are regional benchmarks. To model gross and net yield, ROI and Section 24 impact for one property, the Investor report runs the full calculation with sensitivity bands. You can also browse rental yields by outcode.
Run a yield analysis on an addressCommon questions
What is a good rental yield in the UK?
As a rough guide, a gross rental yield above 7% is strong, 5 to 7% is solid, and below 4% is weak for income (though it may still suit a capital-growth strategy). Gross yield is annual rent divided by purchase price. Net yield, after letting fees, maintenance, voids, insurance and tax, typically runs around 60 to 70% of gross for a well-managed single let.
Where are the highest rental yields in the UK?
On these benchmarks the strongest gross yields are concentrated in the North East and parts of the North West and Yorkshire — areas like Teesside, Sunderland, Hull and Bradford — where purchase prices are low relative to rents. The weakest yields are in prime central and west London, where high capital values compress income returns.
Why are London rental yields so low?
Because capital values are very high relative to achievable rents. A prime London flat can cost ten times a comparable property in the North East but does not command ten times the rent, so the income yield is compressed. London investors typically target capital growth rather than income.
Do HMOs have higher yields than single lets?
Usually yes, on a per-room basis, because letting a property by the room generates more total rent than a single tenancy. The trade-off is more management, higher running costs, mandatory licensing in many areas, and Article 4 planning restrictions in a growing number of councils. The HMO figures here are indicative per-room gross yields before those costs.
How accurate are these yield figures?
They are indicative regional benchmarks compiled from published UK buy-to-let research and Bank of England lending data, not transaction-level figures for a specific property. Use them to compare areas, not to underwrite a deal. For a yield calculation on a specific address, run a property-level report.
These are indicative regional benchmarks compiled from published research, intended for comparing areas, not transaction-level figures for any specific property. Yields move with prices and rents. Always verify current local figures and model the after-cost, after-tax return before investing. Not investment advice.