Newcastle revealed as top yielding PRS market

Newcastle Upon Tyne has been named the top yielding PRS market in England and Wales, with landlords generating estimated gross rental yields of 6.9%.

According to analysis by Rushbrook, this is more than double the lowest yielding market.

Rushbrook 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.

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 has the lowest estimated gross rental yield across England and Wales at just 2.9%, less than half the average recorded across England.

Elmbridge and Waverley in Surrey follow at 3.1%, alongside Powys in Wales, also at 3.1%, while Malvern Hills ranks 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%.

Meanwhile, closely following Newcastle Upon Tyne at the top of the list was Portsmouth with 6.7% and London’s Tower Hamlets 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%.

“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,” said Roma Sharma, managing director at Rushbrook.

“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.”