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Gross yield vs net yield (UK): the difference in one example

Gross yield is the headline rent vs price. Net yield accounts for running costs. Here’s the difference in one simple example.

Published: 21/03/2026 • Last verified: 21/03/2026

The short answer

Gross yield is the headline figure: rent compared to the property price (or value), without taking many costs into account.

Net yield tries to account for the ongoing costs of running the property (so it’s closer to “what you actually keep” before tax and mortgage costs).

A tiny example

Illustrative example:

  • Purchase price: £200,000
  • Rent: £1,000/month = £12,000/year

Gross yield:

  • (£12,000 / £200,000 = 0.06) → 6%

Now assume running costs of £2,400/year (for example, insurance, agent fees, maintenance).

Net yield (simple version):

  • Net rent: (£12,000 - £2,400 = £9,600)
  • (£9,600 / £200,000 = 0.048) → 4.8%
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