Looking at yields is a good way of working out if a buy-to-let property is living up to its profit potential.
Rental yields measure a property's return on investment by revealing the year's annual rent as a percentage of the property's value.
Gross yield is not the same as profit because no business expenses are considered in the calculation.
Net yield is the same calculation, but accounts for business expenses like mortgage payments, insurance and repairs.
According to the latest data from property portal Zoopla, yields have mostly increased in the past 12 months (as at September 2025) as property prices have nudged down, while rents have slowed but continue to rise.
The average gross yield landlords can expect is 5.78 percent. The figure is based on the average buy-to-let home costing £270,045 and generating an average rent of £1,301 monthly.
The cities with the highest yields are Sunderland, Burnley, Middlesbrough and Hull, which offer average gross yields of more than 8 percent.
The North East is the best region for strong yields, offering an average of 7.9 percent.
That's because property prices in the region are cheaper than the rest of England - the rule of thumb is that cheap property returns high yields, whereas the opposite is expected in highly priced areas like London and the South East.
Although yield is important, investors should take other factors into account when buying, like tenant demand and the potential for future house price growth.
Top 20 cities for buy-to-let yields
City
Average gross rental yield
Average monthly rent
Average buy-to-let property price
Sunderland
9.30%
£659
£84,924
Burnley
8.20%
£634
£92,473
Middlesbrough
8.10%
£665
£98,697
Hull
8.00%
£669
£99,819
Blackburn
7.90%
£756
£114,527
Grimsby
7.70%
£675
£104,837
Liverpool
7.70%
£870
£136,045
Newcastle
7.70%
£895
£140,184
Barnsley
7.30%
£734
£120,211
Stoke
7.20%
£774
£128,613
Doncaster
7.20%
£738
£123,134
Preston
7.20%
£861
£144,178
Blackpool
7.20%
£730
£122,374
Bradford
7.10%
£751
£126,363
Rochdale
7.00%
£912
£155,386
Swansea
7.00%
£896
£153,501
Wigan
7.00%
£834
£143,288
Bolton
6.90%
£885
£153,908
Birkenhead
6.80%
£794
£140,061
Wakefield
6.80%
£805
£142,108
Source: Zoopla
London fails to claim a place in the top 20. The best yields in the capital are the East London boroughs of Barking and Dagenham (6.22 percent) and Newham (6 percent) and 5.8 percent in Bexley, South London.
Calculating gross yield
Property consultants Savills publish a free online yield calculator which returns both gross and net yields for a property.
For gross yield, you need a property value and the total annual rent.
For net yield, you need the property value and total annual rent plus running costs, such as mortgage payment, insurance, repairs, the cost of licences and certificates and any other business expenses.
