Entry yield in UK property development finance refers to the initial income return an investor expects to receive when acquiring a property. It is calculated by dividing the current annual rental income by the property’s purchase price, representing the starting yield before any rental growth or market fluctuations. This key metric helps property developers and investors assess the immediate return on their capital investment, supporting decisions on project feasibility and funding. Entry yield also plays a vital role in benchmarking investment performance within the UK property development finance sector.
This sits beneath Exit Value Metrics (GDV, Stabilised Value, Reversionary Value), introducing a more specific variant of the measure without changing its core interpretation. It is commonly considered alongside Exit Yield, as both are closely related measures used to assess similar aspects of performance or risk.
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