Blended Yield Across a Portfolio Explained — How to Calculate and Benchmark It

What Is Blended Yield?

Individual property yield tells you how a single investment is performing relative to its value. Blended yield — sometimes called portfolio yield or aggregate yield — tells you how the entire portfolio is performing as a whole. It is the weighted average of the yields across all your properties, and it is the figure that most experienced landlords and property finance professionals use when discussing portfolio performance.

Calculating Gross Blended Yield

Gross yield ignores costs and calculates income as a percentage of asset value:

`Gross Blended Yield = Total Annual Rental Income ÷ Total Portfolio Value × 100`

**Example:**

• Property A: £12,000/yr income, £200,000 value → 6.0% gross yield
• Property B: £9,600/yr income, £180,000 value → 5.3% gross yield
• Property C: £15,000/yr income, £220,000 value → 6.8% gross yield

Total income: £36,600 / Total value: £600,000 = **6.1% blended gross yield**

Note that property B's weaker yield is partially masked in the blended figure by properties A and C. This is both a feature and a risk of blended metrics.

Calculating Net Blended Yield

Net yield deducts running costs before dividing by portfolio value:

`Net Blended Yield = (Total Annual Rental Income − Total Annual Costs) ÷ Total Portfolio Value × 100`

Costs to include:

• Mortgage interest payments
• Letting agent fees (typically 8–15% of rent)
• Insurance premiums
• Void allowance (typically 5–8% of gross rent)
• Maintenance and repairs (typically 10–15% of gross rent)
• Accountancy and compliance costs
• Ground rent and service charges (leasehold properties)

A portfolio with a 6% gross blended yield might have a 3.0–3.5% net blended yield once all costs are deducted. Net yield is the figure that actually determines whether your portfolio generates cash flow.

Benchmarking Against the Market

UK regional benchmarks for gross buy-to-let yields in 2026:

Portfolios concentrated in London and the South East typically carry lower gross yields but have historically seen stronger capital growth. Whether this trade-off is right for your strategy depends on your income vs capital growth objectives.

Using Blended Yield to Identify Underperformers

Comparing individual property yields against the portfolio blended yield reveals which properties are dragging on performance. A property more than one percentage point below the portfolio average should be reviewed: can rents be increased? Does it require capital investment? Is it time to exit and redeploy capital?

Use our [Portfolio Yield Calculator](/portfolio-yield-calculator) to calculate your own blended gross and net yield across up to ten properties, with adjustable void and cost assumptions.