Newcastle Upon Tyne is top of the hotspots

Newcastle upon Tyne offers the highest estimated gross rental yield across England and Wales at 6.9%, while the lowest is in Derbyshire Dales at 2.9%, according to the latest analysis from Rushbrook.

It analysed the latest UK House Price Index and Office for National Statistics private rental data for August 2026, comparing average house prices and monthly rents to calculate estimated gross rental yields across local authorities in England and Wales and to understand how landlords facing an additional 2 percentage point increase in property income tax rates following the Autumn Budget might fare.

Across England, the average house price stands at £293,525, with monthly rents averaging £1,459, producing an estimated gross rental yield of 6.0%. In Wales, the average gross rental yield is lower at 4.7%. Derbyshire Dales’ 2.9% yield is therefore less than half the average recorded across England.

The lowest-yielding areas include Elmbridge and Waverley in Surrey and Powys in Wales, both at 3.1%, followed by Malvern Hills, which ranked fifth at 3.2%.

Uttlesford and Forest of Dean both record yields of 3.3%, with East Devon, South Hams and Mole Valley completing the ten lowest-yielding locations at 3.4%.

Highest-yielding top ten locations

In contrast, Newcastle upon Tyne’s 6.9% record high is followed by Portsmouth at 6.7%, and Tower Hamlets in London at 6.6%.

Nottingham, Manchester, Southampton and Bristol all record estimated gross rental yields of 6.4%, while Salford follows at 6.3%. Blackpool and Lincoln complete the ten highest-yielding locations, both at 6.2%.

Rushbrook managing director Roma Sharma said: “The Government’s decision to increase property income tax rates adds another layer of financial pressure for landlords, but the impact will vary considerably depending on where they own property and the returns they are already achieving.

“Those operating in lower-yielding areas may find themselves with very little room to absorb further costs once mortgage payments, maintenance and other expenses are accounted for. While stronger yields provide a better starting point, they certainly don’t make landlords immune to the additional tax burden.

“With profitability coming under increasing pressure, effective property management is more important than ever. Minimising void periods, managing maintenance proactively and keeping unnecessary expenditure under control can make a meaningful difference to the long-term viability of a rental investment.”