Rental yields›Wales›Merthyr Tydfil
Rental yield in Merthyr Tydfil
Merthyr Tydfil has the highest rental yield in Wales: 5.8% gross.
Merthyr Tydfil has one of the highest average gross rental yields in England and Wales. Relatively affordable prices against solid rents put it near the top of 316 areas for buy-to-let income return.
Over the past year, average prices in Merthyr Tydfil rose 4% and average rents fell 1.6%.
Average gross yield
5.8%
#20 of 316 areas
Average price
£156,721
▲ 4% past year
Average rent
£754/mo
▼ 1.6% past year
Privately rented
15.4%
of 25,783 homes
Average rent by size
1 bedroom
£552/mo
↓ -2% / yr
2 bedrooms
£640/mo
↓ -1.2% / yr
3 bedrooms
£722/mo
↓ -1.4% / yr
4+ bedrooms
£1,087/mo
↓ -2.5% / yr
Average private rent by number of bedrooms, across new and existing tenancies. ONS Price Index of Private Rents (August 2026).
Council tax bands (2026-27)
Band A
£1,729
Band B
£2,018
Band C
£2,306
Band D
£2,594
Band E
£3,170
Band F
£3,747
Band G
£4,323
Band H
£5,188
Band I
£6,053
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.
How it compares
Work out the yield on a specific property
Pre-filled with the Merthyr Tydfil average. Change them for a real property.
That is right on the Merthyr Tydfil average of 5.8%. Add costs for a net estimate.
Nearby areas
Areas with a similar yield
Common questions
Is Merthyr Tydfil a good place to buy to let?
On income alone it is among the strongest areas in England and Wales, at a 5.8% average gross yield. High-yield areas tend to see slower price growth, so it suits investors who value monthly income over long-term capital gains.
Are rents rising in Merthyr Tydfil?
Over the past year, average rents in Merthyr Tydfil fell 1.6% and average prices rose 4% (HM Land Registry and ONS, to August 2026).
Is there rental demand in Merthyr Tydfil?
Average rents in Merthyr Tydfil fell 1.6% over the past year (ONS), which suggests tenant demand is softening. Ask local letting agents about typical void periods before relying on the headline yield for a buy-to-let. For the size of the market: at the 2021 census, 15.4% of Merthyr Tydfil's 25,783 households rented privately (21.8% social rented, 62.5% owner occupied).
What is the average rent for a 1, 2 or 3 bedroom property in Merthyr Tydfil?
As of August 2026, average monthly rents in Merthyr Tydfil by property size are £552 for a 1 bedroom property, £640 for a 2 bedroom property, £722 for a 3 bedroom property, £1,087 for a 4 or more bedroom property (ONS). The all-size average is £754 a month.
How much is council tax in Merthyr Tydfil?
In 2026-27, the average Band D council tax in Merthyr Tydfil is £2,594 a year including police and other precepts. Bills scale with the property's band: from £1,729 for Band A up to £6,053 for Band I. 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. Merthyr Tydfil is at 5.8%.
Gross yield = annual rent divided by average price. Average price: HM Land Registry UK HPI (July 2026). Average rent: ONS Price Index of Private Rents (August 2026). Regions: ONS. Local-authority averages across all property types, indicative only. Contains public sector information licensed under the Open Government Licence v3.0. Not investment advice.