Rental Yield Calculator, London
Free rental yield calculator. Enter property value, monthly rent, void weeks, and annual costs to instantly see gross yield, net yield, annual rental income, and monthly cash flow. Includes yield benchmark guide for UK and international property investors.
Calculate rental yield for buy-to-let properties in London. London's property market combines high capital values with relatively moderate rental yields, typically 3–5% gross in most boroughs. Understanding net yield is essential given higher purchase prices, service charges on leasehold flats, and London-specific running costs.
London gross rental yields vary widely by borough: Outer East London (Barking, Dagenham) and South-East London can achieve 5–6%, while Prime Central London (Kensington, Chelsea) typically yields 2–3.5%. Always model net yield after mortgage costs, service charge, ground rent, and void periods.
Weeks the property is empty (typical: 2-4)
Insurance, agent fees, maintenance, etc.
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Frequently Asked Questions, Rental Yield Calculator in London
What is a good rental yield in London?↓
In London, a gross rental yield of 4–5% is generally considered good for residential buy-to-let. Prime Central London typically yields 2–3.5% gross, while outer boroughs such as Barking, Bexley, and Croydon can achieve 5–6%. After deducting mortgage costs, management fees, maintenance, and void periods, net yields in prime areas can fall below 2%, making capital growth the primary investment driver.
How do void periods affect rental yield in London?↓
London has relatively low void periods thanks to strong rental demand, particularly near transport links and universities. Average void periods are typically 2–4 weeks per year. However, premium or niche properties can take longer to re-let. This calculator lets you model void periods as a percentage of annual rent to see their impact on net yield.
Are there any London-specific property costs to factor in?↓
Yes. London leasehold flats, which make up a large proportion of rental stock, carry annual service charges (£1,000–£5,000+) and ground rent. These significantly reduce net yield. Additional costs include mandatory gas safety certificates, EPCs, and deposit protection scheme fees. Landlords must also consider potential ULEZ compliance costs for tenants and ensuring properties meet the Renters' Rights Bill standards.
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