Highest Rental Yield Cities in the UK
Compare gross rental yields across every major UK city. Data updated daily from 600,000+ property listings with verified rent estimates.
| Rank | City | Gross Yield | Median Price | Avg. Rent (PCM) | Properties |
|---|---|---|---|---|---|
| 1 | N/A | 25.0% | £154,861 | £0 | 44 |
| 2 | N/A | 23.9% | £322,941 | £0 | 27 |
| 3 | N/A | 18.3% | £143,448 | £0 | 20 |
| 4 | N/A | 17.9% | £502,446 | £0 | 38 |
| 5 | N/A | 16.8% | £121,147 | £0 | 23 |
| 6 | N/A | 14.5% | £271,656 | £0 | 25 |
| 7 | N/A | 14.3% | £368,768 | £0 | 60 |
| 8 | N/A | 13.4% | £283,200 | £959 | 40 |
| 9 | N/A | 12.4% | £146,967 | £0 | 22 |
| 10 | N/A | 11.1% | £141,957 | £0 | 25 |
Gross yield is calculated as (estimated annual rent / median asking price) x 100. Rent estimates are generated using PostGIS spatial analysis of comparable lettings within a 1-mile radius of each property. Rankings are sorted by average gross yield and updated daily from our database of 600,000+ live UK listings.
Investment Guide
Rental yield is the single most important metric for income-focused property investors, and in 2026 the UK market continues to present a stark geographic divide. While southern cities command the highest absolute rents, it is the North, the Midlands, and parts of Scotland where investors achieve the best percentage return on capital deployed.
Understanding the yield gap is critical. A two-bedroom flat in Sunderland purchased for GBP 65,000 and let at GBP 500 per month produces a gross yield of 9.2%. The same monthly rent in London would require a property costing GBP 300,000 or more, compressing the yield to under 2%. This mathematical relationship means that investors prioritising monthly income will almost always find superior returns outside Zone 6.
The cities topping our yield rankings share common characteristics. They have one or more universities creating reliable student demand, an established employment base in healthcare, manufacturing, or logistics, and median property prices that remain well below the national average. Stoke-on-Trent, Burnley, and Bradford are perennial high-yield champions, regularly delivering gross returns above 9%.
Liverpool deserves particular attention. The Baltic Triangle, L1, and L8 postcodes have undergone significant regeneration, attracting young professionals and creative businesses. Landlords benefit from relatively low purchase prices and strong tenant demand driven by the city's two universities, a thriving nightlife economy, and ongoing waterfront development. Yields in inner Liverpool regularly exceed 7%.
Leeds, as the UK's largest legal and financial centre outside London, generates strong demand for professional lets. The South Bank regeneration, one of the largest city-centre development projects in Europe, is expanding the supply of high-quality apartments while simultaneously drawing in new employers and residents.
In Scotland, Glasgow offers yields that rival the best English cities, supported by four universities and a diversified economy spanning engineering, creative industries, and life sciences. Edinburgh yields are lower in absolute terms but are bolstered by the festival-let market, where short-term lets during August can command premium weekly rates.
Our data below ranks cities by gross rental yield, calculated from live asking prices and estimated rents drawn from comparable lettings within a 1-mile radius. Use this to identify the cities that match your income requirements.
Frequently Asked Questions
What is gross rental yield vs net rental yield?
Gross rental yield is the annual rental income divided by the property purchase price, expressed as a percentage. Net rental yield subtracts operating costs including mortgage interest, letting agent fees, insurance, maintenance, void periods, and ground rent before dividing by the purchase price. Net yield is typically 2-3 percentage points lower than gross yield. Our rankings use gross yield for consistency, as net costs vary between investors.
Why do northern cities have higher rental yields?
Northern cities have higher yields primarily because property prices are significantly lower while rents, though also lower in absolute terms, have not fallen proportionally. A GBP 70,000 terraced house in Stoke-on-Trent that lets for GBP 550 PCM produces a 9.4% yield. To achieve the same yield in London, a GBP 400,000 property would need to let at GBP 3,133 PCM, which is above market rate for most areas. The yield advantage is a function of the price-to-rent ratio, not rental demand alone.
How accurate are the yield figures in this table?
Our yield calculations are based on real asking prices from live listings and rental estimates derived from PostGIS comparable analysis of nearby lettings. While asking prices may differ from final sold prices, and actual rents depend on property condition and management, our methodology provides a reliable relative comparison between cities. We update data daily to reflect current market conditions.
Can rental yields change significantly year to year?
Yes. Rental yields shift when either property prices or rents move disproportionately. A city experiencing rapid house price growth without equivalent rent increases will see yields compress. Conversely, areas where rent growth outpaces price growth will see yields expand. Macro factors such as interest rate changes, housing supply, and local employment shifts all influence the yield landscape.
Find Your Next Investment Property
Search 600,000+ UK properties with AI-powered yield analysis, deal scoring, and instant comparable data. Start for free.
