With rents rising faster than house prices, yields are strengthening across the UK. For agents, it’s a clear opportunity to stand out as trusted advisors to landlords.
Key takeaways
Gross yields are on the rise, with rents increasing at a faster pace than house prices across much of the UK.
High-performing locations such as Sunderland, Aberdeen and Burnley are delivering yields above 8%, making them stand-out opportunities.
The North East currently offers the strongest average returns in the country, with yields reaching 7.9%.
With yields improving and mortgage rates stabilising, more landlords are returning to the market and choosing to invest again.
Looking to guide landlords towards the best returns on their investments?
It pays to understand rental yield when advising on buy-to-let opportunities.
Gross rental yield is calculated by expressing annual rental income as a percentage of the property’s price. Net rental yield takes it a step further, factoring in costs such as maintenance and management. Both are essential tools for helping investors judge whether a property is truly a good investment.
At present, the average gross rental yield in the UK stands at 5.8%. This is based on the UK average buy-to-let property price of £270,045 and an average monthly rent of £1,301, according to our latest figures.
Yields are improving across every region, as rents continue to rise while house prices either fall or hold steady.
Of course, yield is only part of the picture. Guiding your clients to consider tenant demand and the potential for long-term capital growth will strengthen your position as a trusted advisor.
Top cities for buy-to-let in the UK
If your landlords are chasing yield, steer them northwards where Sunderland, Aberdeen and Burnley have average gross yields over 8%. This is thanks to lower property prices combined with solid rental demand. Here are the top performers:
City
Average price of a buy-to-let property
Sunderland
Average gross rental yield 9.3%
Average monthly rent £659
£84,924
Aberdeen
Average gross rental yield8.3%
Average monthly rent £734
£106,170
Burnley
Average gross rental yield8.2%
Average monthly rent £634
£92,473
Dundee
Average gross rental yield8.1%
Average monthly rent £809
£119,569
Middlesbrough
Average gross rental yield 8.1%
Average monthly rent £665
£98,697
Hull
Average gross rental yield 8%
Average monthly rent £669
£99,819
Blackburn
Average gross rental yield 7.9%
Average monthly rent £756
£114,527
Glasgow
Average gross rental yield 7.8%
Average monthly rent £1,012
£154,945
Grimsby
Average gross rental yield 7.7%
Average monthly rent £675
£104,837
Liverpool
Average gross rental yield 7.7%
Average monthly rent £870
£136,045
As a letting agent, these cities represent fertile ground for new landlords or those looking to expand their portfolios.
Top regions for rental yields in the UK
The North East leads the UK with average rental yields of 7.9%, thanks to the country’s lowest property prices (£114,098) and affordable rents (£748). Scotland (7.6%), the North West (6.8%), Wales (6.5%) and Yorkshire and the Humber (6.5%) also stand out, with yields rising as rents outpace house prices.
London remains the weakest performer, with yields averaging 5.1%. Higher mortgage rates, new regulations and stretched tenant affordability are all moderating demand, making strong capital growth prospects essential for investors in the capital.
The East of England and South East are also below average at 5.6%, but falling house prices have pushed yields higher than last year, creating potential opportunities for investors seeking lower entry costs.
For letting agents, these shifts highlight where landlord returns are strongest and where market conditions demand a more nuanced investment strategy.
Region
North East
Average gross rental yield 7.9%
Average monthly rent £748
Average price of a buy-to-let property £114,098
Scotland
Average gross rental yield 7.6%
Average monthly rent £861
Average price of a buy-to-let property £136,070
North West
Average gross rental yield 6.8%
Average monthly rent £932
Average price of a buy-to-let property £163,559
Wales
Average gross rental yield 6.5%
Average monthly rent £918
Average price of a buy-to-let property £168,859
Yorkshire and the Humber
Average gross rental yield 6.5%
Average monthly rent £845
Average price of a buy-to-let property £156,660
West Midlands
Average gross rental yield 6.2%
Average monthly rent £970
Average price of a buy-to-let property £188,870
East Midlands
Average gross rental yield 6%
Average monthly rent £910
Average price of a buy-to-let property £180,817
Northern Ireland
Average gross rental yield 5.8%
Average monthly rent £803
Average price of a buy-to-let property £167,126
East of England
Average gross rental yield 5.6%
Average monthly rent £1,244
Average price of a buy-to-let property £267,817
South West
Average gross rental yield 5.6%
Average monthly rent £1,131
Average price of a buy-to-let property £243,806
South East
Average gross rental yield 5.5%
Average monthly rent £1,388
Average price of a buy-to-let property £300,330
London
Average gross rental yield 5.1%
Average monthly rent £2,119
Average price of a buy-to-let property £494,542
Highest yielding areas by region
Knowing the hotspots in your region can make your advice invaluable:
North East: 7.9% average gross yield
County Durham: 8% gross rental yield
Darlington: 7.8% gross rental yield
Gateshead: 8% gross rental yield
Scotland: 7.6% average gross yield
Renfrewshire: 9.5 gross rental yield
East Ayrshire: 10% gross rental yield
West Dunbartonshire: 9.2% gross rental yield
North West: 6.8% average gross yield
Burnley: 8.2% gross rental yield
Blackpool: 7.2% gross rental yield
Preston: 7.2% gross rental yield
Wales: 6.5% average gross yield
Blaenau Gwent: 7.6% gross rental yield
Neath Port Talbot: 7.5% gross rental yield
Merthyr Tydfil: 7.2% gross rental yield
Yorkshire and the Humber: 6.5% average gross yield
Hull: 8% gross rental yield
North East Lincolnshire: 7.7% gross rental yield
Barnsley: 7.3% gross rental yield
West Midlands: 6.2% average gross yield
Stoke-on-Trent: 7.5% gross rental yield
Coventry: 6.7% gross rental yield
Newcastle-under-Lyme: 6.7% gross rental yield
East Midlands: 6% average gross yield
Nottingham: 6.6% gross rental yield
Mansfield: 6.5% gross rental yield
Boston: 6.6% gross rental yield
South West: 5.6% average gross yield
Plymouth: 6.4% gross rental yield
Gloucester: 6.8% gross rental yield
Swindon: 6.3% gross rental yield
South East: 5.6% average gross yield
Southampton: 6.6% gross rental yield
Gosport: 6.46% gross rental yield
Portsmouth: 6.45% gross rental yield
East of England: 5.6% average gross yield
Great Yarmouth: 6.4% gross rental yield
Peterborough: 6.24% gross rental yield
Fenland: 6.17% gross rental yield
London: 5.1% average gross yield
Barking and Dagenham: 6.22% gross rental yield
Newham: 6% gross rental yield
Bexley: 5.8% gross rental yield
These areas are worth flagging to prospective landlords looking for maximum returns.
What’s the outlook for buy-to-let property investment in the UK?
Rents remain high relative to pre-pandemic levels, even as growth slows. Current projections suggest UK rental inflation of 2-3% in 2025, meaning properties in high-demand regions are likely to maintain solid yields. For letting agents, this presents a prime opportunity to guide clients strategically and build long-term relationships.
By combining data-driven insights with your local expertise, you can help landlords make smarter decisions, maximise rental income, and secure the best buy-to-let investment.
Source: Zoopla
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