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What is Rental yield?
Rental yield is the annual rent as a percentage of the property's value or price. Gross yield uses rent before costs; net yield takes off running costs first.
Why it matters to landlords
Gross yield is quick for comparing listings, but net yield is closer to what you actually earn. Include agent fees, insurance, repairs, voids and service charges.
Yield ignores capital growth and mortgage costs, so it is one input to a decision rather than the whole answer.
Example
A £200,000 house lets for £12,000 a year: gross yield is 6%. With £3,000 of costs, net yield is 4.5%.