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.

Join our mailing list:

Leave a comment



Our Next Event

Complex Lending Roadshow March 2017

Complex Lending Roadshow March 2017

Bolton - 14/03/2017

Barnsley - 15/03/2017

Solihull - 16/03/2017

Watford - 17/03/2017

Register now

Latest Comments

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...

view article
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...

view article
Tony Gimple
Tony Gimple 16 Jan 2017

HMOs do make great commercial sense, but do the area research first!

view article
OJoyce
OJoyce 30 Dec 2016

We can only hope this will bring the results we all want and strive for.

view article
Reality
Reality 21 Dec 2016

The changes to land tax were a shock to many when it was first announced by the Chancellor in 2015?s Autumn Statement. However, once the changes came into place and the full details were digested, it?s...

view article
akbar ali dayala
akbar ali dayala 20 Dec 2016

I am a landlord and director of an online letting agents at the moment we charge tenants minimal fees and landlord also meaning we can get best deals for tenants all around if the ban comes in it...

view article
milessgabriel
milessgabriel 05 Dec 2016

Useful article

view article
Spencer Fortag
Spencer Fortag 30 Nov 2016

I am glad that someone listened to me!

view article
Tony Gimple
Tony Gimple 27 Nov 2016

It's not just the lack of estate agency advice that's costing landlords money; most are getting seriously bad advice from their accountants resulting in tax bills far higher than they need to be. Likewise,...

view article
Sally Walmsley
Sally Walmsley 18 Nov 2016

The RLA stands by its sell-off statistics. While we welcome the feedback from Mr Jagota and are delighted to hear how well things are going for landlords in the north east, we would like to make it clear...

view article
Sheryl87
Sheryl87 18 Nov 2016

The high employment levels and the vibrant economy has led to ever-increasing demand for rental properties, especially from professionals relocations from other cities. This has led to more experts teaming...

view article
Sheryl87
Sheryl87 18 Nov 2016

Renting out your house can be risky business. It's good to think about residential landlords insurance. Standard cover includes buildings cover and cover for loss of rent following damage to a property...

view article

Related stories

More articles from Landlords