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Net yield: which costs to include (a quick checklist)

Net yield is your rental income after costs, expressed as a percentage of the property value. Here’s a quick checklist of common costs to include (with UK tax caveats).

Published: 09/04/2026 • Last verified: 09/04/2026

The short answer

Net yield is your rental income after costs, usually shown as a percentage of the property value. It’s a useful “quick health check”, but the result depends heavily on which costs you include (and how you treat one-off costs and voids).

For tax rules, HMRC uses concepts like “wholly and exclusively” (and the line between repairs vs improvements), so keep your estimates conservative and check GOV.UK/HMRC guidance.

A tiny example

Example (illustrative):

  • Property value: £200,000
  • Gross rent: £1,200/month = £14,400/year
  • Annual costs you include: £3,200 (insurance, letting fees, safety checks, repairs allowance)

Net rent (before tax) is £14,400 − £3,200 = £11,200.

Net yield is (£11,200 ÷ £200,000) = 5.6%.

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