A gross yield of 8 to 10 per cent annually is generally considered a healthy target for a UK holiday let, though yields vary significantly by location and property type. Net yield, after mortgage interest, maintenance, management fees, and void periods, will be lower. It is important to stress-test your projections against rising interest rates: a mortgage rate shift from 3 per cent to 6 per cent can significantly erode profitability on a leveraged purchase.