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UK Average Rental Yield: The Top UK Cities

The current average rental yield in the UK in 2022 is 4.71%, and anything over is considered a high rental yield. Click to read more.

Property prices have increased across the UK in recent years, with some areas witnessing percentages grow to double-digits. For landlords and property investors, this is the perfect time to invest. And, considering the 2020 pandemic predicted huge crashes throughout the property market, things are looking up.

What is rental yield?

Rental yield is the amount of rent you should expect to gain from the property in a year which is presented in the format of a percentage. The rental yield can be calculated by dividing the annual rent income by the initial investment.

A good rental yield will be enough to cover the overall running costs of the property, which considers mortgage repayments and natural wear and tear amongst other lettings outgoings. A rental yield between 5-8% is ideal and can get you a good return on investment.

The current UK average rental yield in 2022 is 4.71%, and anything over is considered a high rental yield. Rental yields can vary depending on postcode, so it is essential as an investor to do your research to get the best out of your investments. As house prices continue to rise throughout the year, we expect property investment to remain a strong choice for investors building their portfolios.

The Top 4 Rental Yields in the UK by Postcode *

  • Nottingham: NG7, Average asking price: £170,278, Average asking rent: £1,598, Average yield: 11.30%
  • Nottingham: NG1, Average asking price: £159,083, Average asking rent: £1473, Average yield: 11.10%
  • Manchester: M14, Average asking price: £205,102, Average asking rent: £1,721, Average yield: 10.10%
  • Newcastle Upon Tyne: NE6, Average asking price: £134,641, Average asking rent: £1,104 Average yield: 9.80%


According to JLL, it is expected that the average rental price for a UK investment could rise by 2% during 2022, which will contribute to an 8.5% increase over the next five years. This data is great news for those who are looking to invest in a buy-to-let because it offers a great opportunity when maximising returns in the future.

With buy-to-let worth over £1 trillion in the UK, it is predicted that UK renters will soon outnumber homeowners by 2039.


With two universities creating a large population of students, Nottingham is home to the largest teaching hospital in the UK and growing as the location with two of the best rental yields across the UK. As one of the most vibrant cities in the UK, Nottingham has taken the top spot not once, but twice.


The Manchester property market has continued to rise in recent years, with plenty of options to invest in and growing rent alongside the growth in property prices. As one of the largest university cities in the UK with five popular universities, students are a large part of the overall growth in rental yield. And, despite becoming the largest economic area outside of London, property prices are up to 40% cheaper than in London.


Newcastle has quickly become the latest hub for creatives and tech enthusiasts looking for careers in the north east, where house prices are 47% less than the UK average. As the designated UK science city, Newcastle offers a modern approach that many other cities are yet to grasp.

North named ‘Buy-to-Let Capital’

Our team has specialist knowledge in buy-to-let investment. We have an expert team of sales and after-sales staff that will assist you throughout the purchase process. With properties available across Manchester and throughout the North, get in touch with us today to find out more about your next property investment.