Rental yields›North East›Newcastle upon Tyne
Rental yield in Newcastle upon Tyne
Newcastle upon Tyne has the highest rental yield in the North East: 7.0% gross.
Newcastle upon Tyne 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 Newcastle upon Tyne rose 4.1% and average rents rose 9.3%.
Average gross yield
7.0%
#1 of 316 areas
Average price
£207,547
▲ 4.1% past year
Average rent
£1,215/mo
▲ 9.3% past year
Privately rented
22.8%
of 122,797 homes
Average rent by size
1 bedroom
£814/mo
↑ +9.2% / yr
2 bedrooms
£1,007/mo
↑ +9.2% / yr
3 bedrooms
£1,194/mo
↑ +9.5% / yr
4+ bedrooms
£1,837/mo
↑ +8.4% / 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
£1,695
Band B
£1,977
Band C
£2,260
Band D
£2,542
Band E
£3,107
Band F
£3,672
Band G
£4,237
Band H
£5,084
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
Deprivation (IMD 2025)
180 neighbourhoods
26% of Newcastle upon Tyne's neighbourhoods are in England's most deprived 10%. The typical one sits in the more deprived half of the country.
Fifths of England, most to least deprived (MHCLG IMD 2025). It shifts street by street, so check a specific postcode.
Newcastle upon Tyne has 3 Article 4 areas restricting HMO conversions in the national planning dataset, where turning a family home into a small house-share needs full planning permission. 10 more Article 4 areas cover other rights, such as home alterations.
Check on the Article 4 map →Work out the yield on a specific property
Pre-filled with the Newcastle upon Tyne average. Change them for a real property.
That is right on the Newcastle upon Tyne average of 7.0%. Add costs for a net estimate.
Nearby areas
Areas with a similar yield
Common questions
Is Newcastle upon Tyne a good place to buy to let?
On income alone it is among the strongest areas in England and Wales, at a 7.0% 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 Newcastle upon Tyne?
Over the past year, average rents in Newcastle upon Tyne rose 9.3% and average prices rose 4.1% (HM Land Registry and ONS, to August 2026).
Is there rental demand in Newcastle upon Tyne?
Rent movement is the best free proxy for tenant demand, and average rents in Newcastle upon Tyne rose 9.3% 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, 22.8% of Newcastle upon Tyne's 122,797 households rented privately (27.3% social rented, 49.2% owner occupied).
What is the average rent for a 1, 2 or 3 bedroom property in Newcastle upon Tyne?
As of August 2026, average monthly rents in Newcastle upon Tyne by property size are £814 for a 1 bedroom property, £1,007 for a 2 bedroom property, £1,194 for a 3 bedroom property, £1,837 for a 4 or more bedroom property (ONS). The all-size average is £1,215 a month.
How much is council tax in Newcastle upon Tyne?
In 2026-27, the average Band D council tax in Newcastle upon Tyne is £2,542 a year including police and other precepts. Bills scale with the property's band: from £1,695 for Band A up to £5,084 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.
How deprived is Newcastle upon Tyne?
On the English Indices of Deprivation 2025, 26% of Newcastle upon Tyne's 180 neighbourhoods are in England's most deprived 10%, and 11% are in the least deprived 10%. The typical neighbourhood is in decile 4 of 10, where 1 is most deprived. Deprivation shifts street by street, so check the exact postcode before you offer.
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. Newcastle upon Tyne is at 7.0%.
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). Deprivation: MHCLG English Indices of Deprivation 2025. 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.