Gross rental yield
0%
Before mortgage costs and tax. Agent fees are often quoted plus VAT; enter the figure you will actually pay.
Gross yield is the yearly rent divided by the property's price or value. Net yield takes off the running costs first: service charge and ground rent, the letting agent's fee, insurance, repairs and the landlord's safety certificates. Net yield is the better guide to what a property really earns.
Prime central London usually has lower yields than outer London, because prices are high compared with rents; buyers there often look at long-term value as well as income. To see typical rents, each of our London area guides shows the borough's average rent by flat size.
Thinking of letting a London property? Ask for a free rental valuation, and read how to become a landlord in London.
Divide the yearly rent by the property price and multiply by 100. For net yield, take the yearly running costs off the rent first.
It depends on the area. Central London yields are usually lower than outer London because prices are higher compared with rents.
Gross and net yield are usually shown before mortgage costs and tax. Work those out separately for your own situation.
Service charge and ground rent, the letting agent's fee, landlord insurance, repairs, and safety certificates such as gas and electrical checks.
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