London's yields are low

Residential Valuation Specialist | November 14, 2022

Last Updated: Oct. 05, 2022
LONDON - Apartments COST (£) YIELD (p.a.)
TO BUY MONTHLY RENT
Westminster
Studio £445,000 £2,500 6.74%
1-Bedroom £695,000 £3,163 5.46%
2-Bedroom £1,250,000 £5,352 5.14%
3-Bedroom £2,250,000 £6,912 3.69%
4+Bedroom £3,995,000 £8,450 2.54%
Wandsworth
Studio £349,975 £1,582 5.42%
1-Bedroom £450,000 £1,800 4.80%
2-Bedroom £637,000 £2,850 5.37%
3-Bedroom £797,475 £4,849 7.30%
Tower Hamlets
Studio £365,000 £1,986 6.53%
1-Bedroom £425,000 £2,275 6.42%
2-Bedroom £587,500 £3,467 7.08%
3-Bedroom £725,000 £4,082 6.76%
Lambeth
1-Bedroom £430,000 £1,700 4.74%
2-Bedroom £575,000 £2,500 5.22%
3-Bedroom £690,000 £3,200 5.57%
Barnet
Studio £275,000 £1,101 4.80%
1-Bedroom £335,000 £1,475 5.28%
2-Bedroom £475,000 £1,950 4.93%
3-Bedroom £800,000 £3,000 4.50%
4+Bedroom £900,000 £3,775 5.03%
Southwark
Studio £380,000 £1,710 5.40%
1-Bedroom £425,000 £2,002 5.65%
2-Bedroom £575,000 £2,800 5.84%
3-Bedroom £650,000 £3,250 6.00%
4+Bedroom £800,000 £3,878 5.82%
Camden
Studio £342,500 £1,950 6.83%
1-Bedroom £525,000 £2,329 5.32%
2-Bedroom £800,000 £3,728 5.59%
3-Bedroom £1,170,000 £5,200 5.33%
Ealing
Studio £255,000 £1,350 6.35%
1-Bedroom £350,000 £1,650 5.66%
2-Bedroom £499,950 £2,197 5.27%
3-Bedroom £625,000 £2,700 5.18%
4+Bedroom £1,000,000 £3,350 4.02%
London avg. Rental Yields 5.47%
MANCHESTER - Apartments COST (£) YIELD (p.a.)
TO BUY MONTHLY RENT
City Center
Studio £160,000 £850 6.38%
1-Bedroom £202,125 £1,001 5.94%
2-Bedroom £305,000 £1,500 5.90%
3-Bedroom £410,000 £2,344 6.86%
Salford
Studio £129,995 £841 7.76%
1-Bedroom £188,995 £962 6.11%
2-Bedroom £275,500 £1,400 6.10%
3-Bedroom £355,000 £2,332 7.88%
4+Bedroom £2,500,000 £8,125 3.90%
Trafford
Studio £125,000 £832 7.99%
1-Bedroom £171,750 £832 5.81%
2-Bedroom £280,000 £1,350 5.79%
3-Bedroom £495,000 £2,320 5.62%
4+Bedroom £1,395,000 £6,000 5.16%
Manchester avg. Rental Yields 6.23%
LIVERPOOL - Apartments COST (£) YIELD (p.a.)
TO BUY MONTHLY RENT
City Center
Studio £90,000 £685 9.13%
1-Bedroom £135,950 £823 7.26%
2-Bedroom £196,083 £1,100 6.73%
3-Bedroom £293,500 £1,800 7.36%
Liverpool (all locations)
Studio £80,000 £663 9.13%
1-Bedroom £128,000 £700 6.56%
2-Bedroom £185,000 £925 6.00%
3-Bedroom £284,000 £1,413 5.97%
Liverpool avg. Rental Yields 7.37%
BIRMINGHAM - Apartments COST (£) YIELD (p.a.)
TO BUY MONTHLY RENT
City Center
Studio £139,500 £850 7.31%
1-Bedroom £180,000 £895 5.97%
2-Bedroom £278,273 £1,300 5.61%
3-Bedroom £460,000 £2,250 5.87%
4+Bedroom £595,000 £2,750 5.55%
Birmingham (all locations)
Studio £140,000 £650 5.57%
1-Bedroom £160,498 £840 6.28%
2-Bedroom £240,000 £1,200 6.00%
3-Bedroom £434,349 £1,675 4.63%
4+Bedroom £500,000 £2,080 4.99%
Birmingham avg. Rental Yields 5.78%
EDINBURGH - Apartments COST (£) YIELD (p.a.)
TO BUY MONTHLY RENT
Edinburgh North
1-Bedroom £225,000 £945 5.04%
2-Bedroom £295,000 £1,350 5.49%
3-Bedroom £430,000 £1,800 5.02%
4+Bedroom £650,000 £3,138 5.79%
City Center
1-Bedroom £250,000 £975 4.68%
2-Bedroom £367,500 £1,500 4.90%
3-Bedroom £505,000 £1,948 4.63%
4+Bedroom £795,000 £4,500 6.79%
Edinburgh avg. Rental Yields 5.29%
GLASGOW - Apartments COST (£) YIELD (p.a.)
TO BUY MONTHLY RENT
Glasgow (all locations)
1-Bedroom £119,000 £795 8.02%
2-Bedroom £170,000 £1,125 7.94%
3-Bedroom £200,000 £1,000 6.00%
4+Bedroom £310,000 £2,325 9.00%
Glasgow avg. Rental Yields 7.74%
BRISTOL - Apartments COST (£) YIELD (p.a.)
TO BUY MONTHLY RENT
Bristol (all locations)
Studio £190,000 £1,150 7.26%
1-Bedroom £190,000 £1,150 7.26%
2-Bedroom £300,000 £1,450 5.80%
3-Bedroom £572,500 £2,200 4.61%
4+Bedroom £550,000 £2,350 5.13%
Bristol avg. Rental Yields 6.01%
LEEDS - Apartments COST (£) YIELD (p.a.)
TO BUY MONTHLY RENT
Leeds (all locations)
Studio £100,000 £675 8.10%
1-Bedroom £135,000 £737 6.55%
2-Bedroom £182,498 £932 6.13%
3-Bedroom £379,950 £1,105 3.49%
4+Bedroom £499,995 £2,000 4.80%
Leeds avg. Rental Yields 5.81%
All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you´ll really earn) are typically around 1.5% to 2% lower.
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule

Get updated rental yields data for 75 countries

In the centre, larger apartments sometimes have higher yields - particularly in the more expensive districts of London. This defies the almost universal rule in other cities that smaller flats have higher rental returns.

Foreign residential property investors in Britain have long faced a rising rumble of discontent from the British public about exorbitant housing prices in London, which rightly or wrongly is partly blamed on the large numbers of foreign buyers, as well as the continuous flow of immigrants into London. Both are hot-button issues.

One result is that foreign buyers are now liable to capital gains taxes when they sell their UK properties (previously they were exempt). Another is that stamp duty has been ramped up on higher-end properties.

The gross rental yields for London have gotten a lot better, with it ranging between 2.54% and 7.30% with a city average of 5.47%.

As for other bigger cities in the UK the yields are moderate to good. Manchester yields are between 3.90% and 7.99% with an average of 6.23%, Liverpool produces yields between 5.97% to 9.95% with an average of 7.37%, in Birmingham the yields are between 4.63% and 7.31% with an average of 5.78%, Bristol has rental yields of 4.61% to 7.26% with an average of 6.01%, Leeds produces yields of 3.49% to 8.10% with the city average of 5.81%, In Glasgow you can expect yields between 6.00% and 9.00% with an average of 7.74%, and Edinburgh has rental yields of 4.63% to 6.79% with an average of 5.29%.

Round trip transaction costs are higher in the UK now than they were in the past, especially in London given higher stamp duties on expensive properties. See our UK residential property transaction costs analysis and our Residential property transaction costs in UK compared to other countries.