Rushbrook analysis of August 2026 house price and rent data puts Newcastle upon Tyne at the top of the yield table on 6.9 percent, while Derbyshire Dales sits bottom on 2.9 percent. The study compares UK House Price Index values with Office for National Statistics private rental figures across England and Wales.
The gap underlines how exposed low-yield markets look before the next tax rise. Across England the average house price stands at 293,525 pounds against average monthly rent of 1,459 pounds, giving an estimated gross yield of 6.0 percent. In Wales the average is lower at 4.7 percent, leaving the bottom-ranked areas on barely half the English mean.
April 2027 changes the maths. The Budget adds two percentage points to property income tax bands, so landlords in thin-margin areas have the least room to absorb mortgage costs, maintenance and voids before cash flow turns negative.
Highest yields cluster in cities and coastal towns
Portsmouth follows Newcastle on 6.7 percent, with Tower Hamlets in London on 6.6 percent. Nottingham, Manchester, Southampton and Bristol each record 6.4 percent, while Salford posts 6.3 percent. Blackpool and Lincoln complete the top ten on 6.2 percent. Savills expects house prices to fall 1.5 percent in 2027, which could lift yields where rents hold but would also signal weaker capital growth.
The pattern favours larger urban markets with lower entry prices relative to rents rather than prime commuter stock. City terraces, flats near transport links and established rental postcodes dominate the upper half of the table.
Lowest yields sit in Surrey, Wales and the South West
Elmbridge and Waverley in Surrey and Powys in Wales each record 3.1 percent, followed by Malvern Hills on 3.2 percent. Uttlesford and Forest of Dean post 3.3 percent, while East Devon, South Hams and Mole Valley close the bottom ten on 3.4 percent.
Rushbrook calculated the figures to test how landlords facing higher income tax might fare by area. Earlier Pegasus Insight data showed 85 percent of landlords still in profit but confidence down to 23 percent, a split that fits a market where headline yields look solid but net returns vary widely.
This follows Landlord Knowledge’s coverage of the Savills 2027 forecast, which warned that softer prices would not help landlords unless rents keep pace with costs. The Rushbrook table adds the local detail behind that national picture.
Roma Sharma, managing director of Rushbrook, said the tax rise adds pressure but the impact will differ by location. “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,” she said. Rushbrook publishes portfolio research for investors.
What this means for landlords
- If you own in a high-yield city: stress-test net yield after the 2027 bands, not just gross yield, before adding stock.
- If you own in a low-yield area: review rents against evidence, cut voids and weigh incorporation or disposal advice early.
- If you plan to buy: favour areas where rent covers stressed mortgage tests with headroom for rate moves and efficiency spend.
- Watch for: ONS rent updates and lender cover ratios, which decide how far gross yield translates into borrowing power.
- Bottom line: location now decides who can absorb the Budget rise and who must reprice, refinance or sell.
Editor’s view
Gross yield tables flatter weak deals. Once tax, voids and maintenance come out, a 3 percent market leaves no margin for error. Landlords in the south and rural prime spots face the hardest rethink before 2027.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 11 November 2026
Sources: Rushbrook, ONS, UK House Price Index
Related reading: Savills warns house prices to fall 1.5% in 2027
