How do landlords in London differ from the rest of the UK?

How do landlords in London differ from the rest of the UK?

Compared to the rest of the UK, landlords with properties in London have higher disposable incomes, are more likely to be full-time workers, and typically become landlords at a younger age, according to new CML research.

According to the 2014/15 English Housing Survey, 28% of dwellings in London are privately rented – with the capital having a higher proportion of privately renting tenants than any other English region.

In London, about 50% of landlords report at least £1,000 of monthly disposable income while, outside the capital, only one-third report this level of income.

London landlords are 27% more likely to be in full-time employment, and 37% less likely to be retired than landlords in the rest of the country.

They are are about 25% less likely to start out as an “accidental” landlord and 50% more likely to become a landlord after moving in with a partner who also owns their own home.


The average age of first-time landlords in London is 42, compared to 47 outside the capital.

When it comes to types of property owned, London landlords are more likely to let out flats. 79% own flats to let, while 47% have houses of some type. In the rest of the country, just 40% of landlords rent flats, while 84% rent houses.

The distribution of property ownership among landlords in London is similar to the rest of the UK. Some 60% of those in London own a single property, while a further 20% own two properties – mirroring the distribution in the rest of the UK. Likewise, about 10% of landlords in London own five or more properties, similar to the rest of the UK.

Landlords in the capital are also just as likely as those elsewhere to offer tenancies of more than 12 months. Almost 60% of UK landlords indicated that they would offer tenancies of longer than a year, with little variation across regions.

London landlords are marginally better informed of tax changes that will affect the private rented sector. This may reflect the higher incomes and wider prevalence of buy-to-let borrowing in London – particularly as those landlords would be most affected by proposals to reduce the amount of mortgage interest that can be deducted against tax.

The use of letting agents is more common in London, but London landlords are less likely to opt for full management through the agent.

Using a limited company structure is still fairly uncommon, both in and out of London. Only 6.2% of landlords in the capital are incorporated (or planning to become so), versus 2.8% outside London.

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Latest Comments

MBM Homelets
MBM Homelets 23 Mar 2017

Although this is a very positive step, there is little or no guarantee of the standard of workmanship employed by the tenants. We have had experience of a professionally decorated property being ' painted'...

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ajay
ajay 21 Mar 2017

How is the "robust evidence" looking now?

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NathanG
NathanG 20 Mar 2017

I've been watching the series so far and am completely baffled by the cases that were presented. Though, I don't think that we can protect ourselves from every scam possible - it will just make the scammers...

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Landlady14
Landlady14 01 Mar 2017

You would think so Niraj Shah! My experience only proves that there are varying qualitiers of professional in all aspects of property letting. None of the ones I have dealt with, from letting agents to...

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Mark
Mark 01 Mar 2017

Thanks for this article. Hopefully one day everybody's lifestyle will be eco-sustainable.

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Ben Taylor
Ben Taylor 28 Feb 2017

I was convinced that London was the most expensive!

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Alan Read
Alan Read 28 Feb 2017

Australia are leading the way in this I think. The trouble with Britain is we don't get enough sun to make use of solar power.

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James Powell
James Powell 27 Feb 2017

This is a very good news.

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DanHumphreys
DanHumphreys 27 Feb 2017

It sounds like a good idea. Anything to help the younger generation get a foothold.

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Matt
Matt 20 Feb 2017

Is this fake news?

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Matthew Hollywood
Matthew Hollywood 07 Feb 2017

Matthew Hollywood - Director Mishon Mackay Land & New Homes - Brighton The shortage of New Homes is in part effected by the lack of land sales. Land sales are held back because there is a disparity between...

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CommercialTrust
CommercialTrust 30 Jan 2017

Hi Graham, Would be interesting to see the above figure calculated against an investment via a Lt Company /SPV structure and if the investor found themselves pushed in to the higher tax bracket. Mortgage...

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