Find out where in the UK average gross yields and average asking prices for rental properties are increasing the most.
Are you looking for high yields on your next rental property or want to know if what you’re currently offering is in line with what you should be expecting from the current rental market? Then you’re in the right place.
As a landlord, having a reliable rental income is essential. This article will guide you through what it means to have a good property yield, how you can work on increasing it and where you can find the highest gross yields and average rents in the UK.
So, let’s dive in.
What is a good property yield?
Great question – and something we get asked a lot by our landlords. From what we’re seeing on the market, we’d say that a good yield lies between 5-8%. To work out what your yield is, you need to divide your annual rental income from your property by the property’s value. Lastly, you multiply this value by 100 to get your percentage yield value.
There are various factors that influence yield values, such as geography and rental property type. So, for example, student property lets can have higher rental yields compared to a standard buy-to-let. However, also consider the wider picture - if you own a student property, you might find that you incur greater costs. If you’re looking for more personalised advice on your investment, we’d be happy to help. Click here to find out more, and one of our experts will be in touch.
How can you increase your lets’ average yield?
While there is no one-size-fits-all way of how to increase your gross yield, you may find that some of the following strategies can help you boost your rental income to increase your yield:
- Renovate strategically: Focus on high-impact improvements like updating kitchens and bathrooms to justify higher rents.
- Offer additional amenities: Consider providing furnished properties or including utilities in the rent to attract tenants willing to pay a premium.
- Implement energy-efficient upgrades: Install smart thermostats and LED lighting to reduce utility costs and appeal to environmentally-conscious renters.
- Target niche markets: Consider catering to a wider cohort, to include specific tenant groups like students or young professionals to maximise occupancy rates.
- Optimise pricing strategy: Regularly review and adjust rent prices based on market trends and local demand. Talk to local lettings experts like us to figure out what’s best for you.
- Minimise void periods: Implement efficient tenant turnover processes, and consider offering incentives for longer leases.
- Maintain properties proactively: Regular upkeep can prevent costly repairs and keep tenants satisfied.
Remember that complying with local regulations and prioritising tenant satisfaction, where possible, can help to ensure your long-term success in a competitive rental market.
Which areas in the UK have the highest average gross yield?
To offer you some insight into what areas in the UK have some of the highest gross yields, here’s an overview of the average rent per calendar month and what a landlord in that area, on average, could expect in yields.
Keep in mind that these figures are averages, meaning that some yields will be below this percentage, while others may be quite a bit above.
| Area |
Average rent per calendar month |
Average gross yield |
| East Ayrshire |
£580 |
9.90% |
| Renfrewshire |
£763 |
9.50% |
| North Lanarkshire |
£690 |
9.20% |
| Sunderland |
£647 |
9.10% |
| West Dunbartonshire |
£711 |
9.00% |
| Middlesbrough |
£670 |
8.90% |
| Hartlepool |
£565 |
8.80% |
| Burnley |
£597 |
8.60% |
| Clackmannanshire |
£726 |
8.60% |
| Inverclyde |
£725 |
8.60% |
Source: Zoopla Rental Index, Nov 2024
Where are average asking prices for lets growing the fastest?
In terms of the rental price hotspots, if you’re a landlord and have a property in any of the following areas, you may be one of the lucky ones, and have seen your average asking price for a new let increase by quite a significant amount.
| Area |
Annual change |
| Batley, West Yorkshire |
26.1% |
| Hartlepool |
21.1% |
| Coventry, West Midlands |
20.3% |
| Huddersfield, West Yorkshire |
20.1% |
| Witney, Oxfordshire |
18.8% |
| Andover, Hampshire |
16.4% |
| Birkenhead, Wirral, Merseyside |
16.1% |
| Reading, Berkshire |
16.0% |
| Cheltenham, Gloucestershire |
15.8% |
Source: Rightmove, Q3 2024
Although these figures offer a good indication of where rents are increasing and where one could potentially earn greater yields, do not assume that your properties or portfolio could or should be achieving the same levels of growth. And, while we only mention some areas in this article, there are still plenty of investment opportunities across the UK.
Now that you’ve familiarised yourself with what’s going on in the lettings market, one of the best plans of action is to get more personalised advice for your rental property, including an up-to-date rental valuation and having a chat to a local lettings expert.
So if all this information has made you wonder what you could be earning, contact your local branch today for some free lettings insight and a free rental valuation.
