Average Rental Yields by UK City 2026
2026-08-13
Yield varies enormously across the UK. The same £150,000 can produce a 4% yield in one city or an 8% yield in another. Knowing where yields sit — and why — is the first step in choosing where to invest.
This guide ranks 20 UK cities by average gross yield in 2026, based on current asking prices and achieved rents.
The Yield Table
| Rank | City | Avg Gross Yield | Avg Property Price | Avg Monthly Rent |
|---|---|---|---|---|
| 1 | Sunderland | 9.2% | £95,000 | £730 |
| 2 | Hull | 8.8% | £100,000 | £735 |
| 3 | Stoke-on-Trent | 8.5% | £105,000 | £745 |
| 4 | Middlesbrough | 8.2% | £110,000 | £750 |
| 5 | Liverpool | 7.8% | £135,000 | £880 |
| 6 | Bradford | 7.5% | £115,000 | £720 |
| 7 | Newcastle | 7.2% | £150,000 | £900 |
| 8 | Nottingham | 7.0% | £155,000 | £905 |
| 9 | Glasgow | 6.9% | £145,000 | £835 |
| 10 | Sheffield | 6.8% | £155,000 | £880 |
| 11 | Leeds | 6.5% | £175,000 | £950 |
| 12 | Manchester | 6.3% | £195,000 | £1,025 |
| 13 | Coventry | 6.2% | £180,000 | £930 |
| 14 | Birmingham | 6.0% | £195,000 | £975 |
| 15 | Cardiff | 5.8% | £200,000 | £970 |
| 16 | Edinburgh | 5.5% | £250,000 | £1,145 |
| 17 | Bristol | 5.2% | £270,000 | £1,170 |
| 18 | Reading | 4.8% | £300,000 | £1,200 |
| 19 | Cambridge | 4.3% | £380,000 | £1,360 |
| 20 | London (avg) | 4.0% | £450,000 | £1,500 |
:::stats 9.2% | Highest (Sunderland) 4.0% | Lowest (London) 6.5% | National Average :::
What the Numbers Mean
The North-South Divide
The pattern is clear: yields decrease as you move south. This isn't new — it's been the case for decades. The reason is simple: southern property prices are inflated by owner-occupier demand (people wanting to live there for lifestyle and commuting), while rents are set by what tenants can actually afford.
In a £95,000 Sunderland terrace, the tenant is paying rent relative to local wages. In a £450,000 London flat, the tenant is also paying relative to wages — but the property costs 5x more to buy. The rent doesn't scale proportionally with price.
High Yield ≠ Best Investment
Sunderland yields 9.2%. London yields 4.0%. Does that make Sunderland a better investment? Not necessarily.
Capital growth (10-year averages):
- London: 4-6% annually
- Manchester: 5-7% annually
- Liverpool: 3-5% annually
- Sunderland: 1-2% annually
A London property yielding 4% but growing 5% annually produces a higher total return than a Sunderland property yielding 9% but growing 1%. The yield compensates for the lack of growth — but doesn't always fully offset it.
For the full comparison of these two strategies, see Cashflow vs Capital Growth.
The Sweet Spot: 6-8% Yield + Growth
The cities that combine reasonable yields with meaningful growth are typically the best risk-adjusted investments:
- Liverpool (7.8% yield, 3-5% growth)
- Manchester (6.3% yield, 5-7% growth)
- Nottingham (7.0% yield, 3-4% growth)
- Leeds (6.5% yield, 4-5% growth)
- Sheffield (6.8% yield, 3-4% growth)
These offer cashflow that sustains the investment through market cycles PLUS growth that builds long-term wealth. They're the cities where most portfolio builders focus.
Yield by Property Type
Within any city, yields vary by property type:
| Property Type | Yield Premium/Discount | Notes |
|---|---|---|
| Terraced house | Baseline | Most common BTL stock |
| Semi-detached | -0.3 to -0.5% | Higher price, rent doesn't scale fully |
| Detached | -0.5 to -1.0% | Premium price, moderate rent |
| Purpose-built flat | +0.0 to -0.5% | Service charges eat yield |
| Converted flat | +0.2 to +0.5% | Often cheaper, comparable rent |
| HMO (per room) | +3 to +6% | Higher yield, higher costs |
The classic investor property — a 2-3 bed terrace — typically offers the best single-let yield because the price-to-rent ratio is most favourable.
[!warning] Flat yields hide service charges A flat appearing to yield 6.5% might actually yield 4.5% after a £150/month service charge. Always check the service charge and ground rent before calculating yield on leasehold properties. A freehold terrace with zero running costs almost always out-yields a leasehold flat at the same headline number.
How Yields Have Changed (2020-2026)
| City | 2020 Yield | 2026 Yield | Change | Reason |
|---|---|---|---|---|
| Manchester | 5.5% | 6.3% | +0.8% | Rent growth outpaced price growth |
| Liverpool | 7.2% | 7.8% | +0.6% | Strong rent growth, moderate prices |
| London | 3.5% | 4.0% | +0.5% | Prices flat, rents rising |
| Leeds | 6.0% | 6.5% | +0.5% | Balanced growth |
| Sunderland | 10.5% | 9.2% | -1.3% | Prices rose faster than rents |
| Birmingham | 5.5% | 6.0% | +0.5% | Rent growth accelerating |
The broad trend: yields have improved in most cities since 2020 because rent growth (3-5% annually) has outpaced house price growth (1-3% annually) in most areas. The rental market has been tighter than the sales market for several years, and that's reflected in better numbers for new purchases.
Using Yield Data to Invest
Yield is a screening tool, not a decision tool. Use it to:
- Choose your target cities (minimum yield threshold: 5.5-6% for most BTL strategies)
- Compare specific properties against the city average (is this deal above or below average?)
- Assess deal quality (a property yielding 2% above the city average is either a genuine bargain or has a problem — investigate which)
But don't buy on yield alone. Always verify:
- Rental demand (high yield means nothing if the property sits empty)
- Property condition (high yield on a property needing £20,000 of work is misleading)
- Area trajectory (is the area improving or declining?)
- Stress testing (does the yield survive at mortgage rates +2%?)
The Rental Market Analysis tool shows live yield data and demand indicators for any postcode.
:::tool rental-market Check Yields in Your Target Area :::
Run any specific property through the Deal Analyser to see whether it performs above or below the city average — and whether it cashflows after all costs.
:::tool deal-analyser Analyse a Specific Deal :::
Summary
- UK yields range from 4% (London) to 9%+ (Sunderland, Hull)
- The sweet spot for balanced investors: 6-8% yield cities with growth potential
- Yields have improved since 2020 as rent growth outpaced house prices
- High yield compensates for low growth — but doesn't always fully offset it
- Terraced houses offer the best single-let yields (lowest price-to-rent ratio)
- Always check service charges on flats — they can halve the effective yield
- Use yield to screen and compare, then verify with demand data and stress testing
Yield gets you in the door. Deal analysis, stress testing, and local research tell you whether to walk through it.
Yield figures are calculated from average asking prices and achieved rents at the time of writing. Actual yields vary by specific property, location within a city, and market conditions. Always conduct property-specific research.