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Rental yieldsDorset

Rental yield in Dorset

Dorset sits in the lower half for rental yield in England and Wales, a little below the 4.4% typical figure across all 316 areas.

Over the past year, average prices in Dorset rose 1.6% and average rents rose 4.8%.

Gross yield

3.9%

Average price

£325,410

+1.6% / yr

Average rent

£1,051/mo

+4.8% / yr

National rank

#244 of 316

Who rents here

Census 2021, 169,261 households

16.3% of homes in Dorset are private rentals.

Private rented 16.3%Social rented 12.3%Owner occupied 70.4%

Average rent by size

1 bedroom

£728/mo

+5% / yr

2 bedrooms

£961/mo

+4.9% / yr

3 bedrooms

£1,184/mo

+5% / yr

4+ bedrooms

£1,674/mo

+4.2% / yr

1 bed£728
2 beds£961
3 beds£1,184
4+ beds£1,674

Average advertised rent by number of bedrooms. ONS Price Index of Private Rents (2026-07).

Council tax bands (2026-27)

Band A

£1,843

Band B

£2,151

Band C

£2,458

Band D

£2,765

Band E

£3,379

Band F

£3,994

Band G

£4,608

Band H

£5,530

Average annual bill for the area, including police and other precepts (MHCLG and Welsh Government, 2026-27). Community precepts vary, and the band is set by the property, so check the exact band on gov.uk.

Work out the yield on a specific property

Pre-filled with the Dorset average. Change them for a real property.

Gross yield3.9%

That is right on the Dorset average of 3.9%. Add costs for a net estimate.

How it compares

Dorset3.9%
Highest (Newcastle upon Tyne)6.9%
Typical (median)4.4%
Lowest (Derbyshire Dales)2.8%

Areas with a similar yield

Common questions

Is Dorset a good place to buy to let?

It is around the middle for rental income, at a 3.9% average gross yield. Whether it works depends on the specific property, so always run the actual numbers.

Are rents rising in Dorset?

Over the past year, average rents in Dorset rose 4.8% and average prices rose 1.6% (HM Land Registry and ONS, to 2026-07).

Is there rental demand in Dorset?

Rent movement is the best free proxy for tenant demand, and average rents in Dorset rose 4.8% over the past year (ONS), which points to tenants competing for available stock. Still ask local letting agents about typical void periods before committing to a buy-to-let there. For the size of the market: at the 2021 census, 16.3% of Dorset's 169,261 households rented privately (12.3% social rented, 70.4% owner occupied).

What is the average rent for a 1, 2 or 3 bedroom property in Dorset?

As of 2026-07, average monthly rents in Dorset by property size are £728 for a 1 bedroom property, £961 for a 2 bedroom property, £1,184 for a 3 bedroom property, £1,674 for a 4 or more bedroom property (ONS). The all-size average is £1,051 a month.

How much is council tax in Dorset?

In 2026-27, the average Band D council tax in Dorset is £2,765 a year including police and other precepts. Bills scale with the property's band: from £1,843 for Band A up to £5,530 for Band H. Community precepts vary within the area, so treat these as area averages and check the exact band and bill with the council.

What is a good rental yield in the UK?

As a rough guide, under 4% is low, 5 to 6% is typical, and above 6.5% is high. Dorset is at 3.9%.

Weighing up Dorset? Ask people who invest there in the free Housetrix Discord, or browse every area ranked by yield.

Gross yield = annual rent divided by average price. Average price: HM Land Registry UK HPI (01/06/2026). Average rent: ONS Price Index of Private Rents (2026-07). Local-authority averages across all property types, indicative only. Contains public sector information licensed under the Open Government Licence v3.0. Not investment advice.

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