Rental yield

Your numbers,
not our promises.

Gross yield flatters. Net yield is what reaches you. This calculator uses figures you supply, because a yield that comes from someone else's assumptions is not a yield, it is a sales pitch.

£
£
£
Service charge, ground rent, management fee, insurance, maintenance. What a service charge covers →
£
Stamp duty, legal fees, survey. Leave at zero to see yield on price alone. Work out the stamp duty first →
Net rental yield
4.1%

Indicative only, calculated from the figures you entered. We do not estimate market rent and this is not a forecast or a projection of return. Rents, costs and voids vary; confirm with your own advisers before relying on any number.

Why the two numbers differ

Gross yield is the headline.
Net yield is the reality.

Marketing quotes gross yield because it is the bigger number. It ignores everything that happens after the tenant pays.

Gross yieldAnnual rent divided by the purchase price. Nothing is deducted.
Void periodsWeeks between tenancies when no rent arrives. Even a well-run flat has them.
Running costsService charge and ground rent on a new-build leasehold are the two most underestimated lines.
Purchase costsStamp duty, legal fees and survey are real capital. Yield on price alone ignores them.
What this does not include

Yield is not return.

This figure is income against capital. It says nothing about the following, and no honest advisory would fold them into one number:

Capital growth or decline
Income tax on rent, and the Section 24 restriction on mortgage interest
Mortgage payments if you are not buying with cash
Capital gains tax on eventual sale
Currency movement between sterling and your home currency

Want these numbers
checked against a real property?

Bring us a development you are considering. We will work through the actual service charge, the realistic rent and what is left after costs.

Book a Consultation