Where in the UK does it cost the most to be a landlord?

Where in the UK does it cost the most to be a landlord?

According to new data and analysis by specialist mortgage lender, Kent Reliance, the average cost to run a property in London(excluding mortgage costs and tax, but including void periods) is £6,535 per year, or 32% of the amount that they receive in rent.

It probably comes as no surpirise but the data reveals that London has been identified as the most expensive region in Britain to be a landlord.

The average UK landlord spends £3,632 per year, which equates to 34% of average rental income; almost half of the cost of London.  

While London emerged with the highest average costs at £6,535 per property, the Capital’s high rents mean that this equates to less than a third (32%) of landlords’ rental income, the lowest cost to rent proportion in the UK. Trailing behind with the second highest running costs is the South East, where landlords spend an average of £3,691, or 37% of rental income, followed closely behind by the East of England with average costs of £3,212, or 35%.

The North East of England has been identified as the cheapest region, where the average cost is £1,895 per property per year, or 34% of the amount that they receive in rent. The region with the second lowest average costs is Wales, with landlords spending an average £2,211. However, in an area with lower rents, costs equate to as much as 41% of a Welsh landlord’s rental income. The third cheapest region is the North West, where landlords spend £2,483, or 33% of rental income.

When looking at local authorities, landlords have the lowest running costs in Blaenau Gwent, Wales, where they average at £1,495, while the nineteen local authorities with the highest average costs are in London. Outside of London, South Bucks in the South East tops the list, with landlords spending an average £6,078 per property.


Landlords are faced with rising tax burdens following stamp duty changes introduced last year and mortgage tax relief changes which came into effect in April. In light of this, over a third of UK landlords surveyed will be looking to cut costs, targeting letting agent fees, property maintenance and mortgage costs. However, one in five are considering raising rents to recoup some of these costs from their tenants.

John Eastgate, Sales and Marketing Director of OneSavings Bank, comments: “With a fifth of UK households living in rented accommodation, landlords play a crucial role in supporting the housing market as they bridge the gap between housing supply and demand.

While taxes may seem to be a simple way to tackle the UK’s housing crisis, they will have a ripple effect, and will impact businesses who support the property industry as landlords apply cost cutting measures, or cause rents to rise as tenants cover the cost of rising taxes, or even both.

Another effect that will emerge is a rise in professionalisation of the sector as amateur and accidental landlords leave the market, leaving fewer, bigger landlords. But this alone will not solve the nation’s housing crisis.”

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Latest Comments

Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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sean benton
sean benton 01 Sep 2017

Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

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Mark N.
Mark N. 30 Aug 2017

We have seen a surge in instructions over August and that should continue into September too.

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Chris
Chris 30 Aug 2017

Unfortunately, all the legislation bears its force on Landlords and ignores, naively, the effect of Rogue Tenants on the ability of landlords to keep houses in repair and offer properties for rent at reasonable...

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Christian Donovan
Christian Donovan 18 Aug 2017

The write-down on house values, combined with the fall in the GBP saddled the fund?s property portfolio with a 1.4% loss in the second quarter. The shocking amount of $240 million.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

Interesting point of view.

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