The average gross rental yield in the UK is currently 5.60%. This is based on the average buy-to-let property costing £261,897 and the UK’s average rent being £1,223, according to our latest data. Gross yields have improved across all regions in the last year as house prices have started to fall or remained the same while rents have continued to rise.

The highest yielding cities in the UK are Sunderland, Aberdeen and Burnley, which offer average gross yields of 8%+

The North East is the best region for investors looking for strong yields, offering an average of 7.65%

London offers the lowest gross yields in the UK of 4.93% on average, only 0.1 percentage point higher than 3 months ago. With higher mortgage rates, new regulations and low house price growth in recent years, rents appear to have reached an affordability ceiling and tenant demand is starting to moderate.