Yield (rental)
The return a property generates relative to its value.
2 min read · Updated 2 August 2026
Overview
Gross yield is annual rent divided by property value. Net yield deducts running costs — management, insurance, maintenance, void allowance, ground rent and service charge — and is the figure that matters. Financing costs and tax then determine actual cash flow.
Legal requirements
- Mortgage interest is not deductible for individual landlords; a 20% tax credit applies instead.
Practical guidance
- Model net yield with a realistic void allowance of two to four weeks and a maintenance provision.
This wiki entry is general information for UK landlords and letting agents, not legal advice. Rules differ across England, Wales, Scotland and Northern Ireland — check your local requirements or take advice before acting.