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Newcastle upon Tyne — NE1 to the coast

Rental yield calculator — gross, net and the Newcastle answer

Rental yield is annual rent divided by purchase price, times 100. A £110,000 Byker terrace letting at £775 a month returns 8.5% gross — the kind of number that's normal in east Newcastle and fantasy in the south. Run your own deal below, gross and net.

Start from a real Hub example

→Running costs (for net yield)
Gross yield
8.5%
Net yield (est.)
6.1%
Net income (est.)
£6,698/yr
£9,300 annual rent on a £110,000 purchase · 2 void weeks assumed · before mortgage costs and tax

Verdict: strong by UK standards — east-end Newcastle territory

Estimates for comparison only — not financial advice. Mortgage costs and tax excluded; preset figures are indicative June 2026 averages from the Hub area guides.

What is a good rental yield in the UK?

Nationally: 5–6% gross is solid, 7%+ is strong, and anything under 4% is a capital-growth bet dressed as an income one. Newcastle's east end — Byker, Walker, Fenham, Heaton — still produces 6–8% gross at 2026 prices, roughly double typical London returns. The premium postcodes trade yield for growth: Jesmond and Gosforth run 4–5% but let instantly and resell strongly.

The full buy-to-let Newcastle guide

Where do Newcastle yields run hottest?

  • Bykerterraces from £95k7–8%
  • Walkerthe city's lowest entry7.5–9%
  • Fenhamfamily lets, short voids5.5–6.5%
  • HeatonTyneside flats, deep demand6–7%
  • Jesmondpremium, growth-led4–5%

Indicative gross bands, June 2026 — full numbers in each area guide.

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Yield questions, answered

How do you calculate rental yield?

Gross yield = annual rent ÷ purchase price × 100. A £110,000 Byker terrace letting at £775 a month earns £9,300 a year: 9,300 ÷ 110,000 × 100 = 8.5% gross. For net yield, deduct management, maintenance, insurance and void weeks from the rent before dividing — typically two-thirds of the gross figure.

What is a good rental yield in the UK?

Nationally, 5–6% gross is considered solid and 7%+ strong. London typically runs 3–4%, while Newcastle's east end — Byker, Walker, Fenham, Heaton — still delivers 6–8% gross at 2026 prices, which is why North East buy-to-let keeps drawing southern money.

Should I judge a deal on gross or net yield?

Buy on net, compare on gross. Gross yield is the universal shorthand agents quote; net yield — after management, maintenance, insurance and voids — is what actually lands in your account before mortgage and tax. A deal that only works gross doesn't work.

Does rental yield include mortgage costs?

No — yield measures the property's income against its price, independent of how you finance it. Investors then check the mortgage separately: lenders stress-test that rent covers 125–145% of the payment. Cashflow after mortgage is a third calculation again.