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

jason hadzikostas
jason hadzikostas 28 Jun 2017

The most important thing is a budget. Students have to manage their spendings in food, house maintenance, books and many other things. According to me, student Studios are the perfect option for them as...

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SecomTech
SecomTech 22 Jun 2017

AT Last...This was discussed years ago and there was a move towards landlords registering their bad tenants on a database..(can't remember where) It seems a logical step though our leaders will probably...

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Bertrand
Bertrand 02 Jun 2017

How about the Welsh Govt introducing a scheme to protect landlords against "rogue" tenants who are then taken to court for criminal damage to the properties they trash. Pretty unlikely I suspect and politically...

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AmberMorris
AmberMorris 25 May 2017

"Please don't pick a novelty tune-playing doorbell. They're not 'fun'. They're stupid." Laughed a lot to this. It's actually true, though.

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Oliver Conway
Oliver Conway 18 May 2017

Making a neat inventory is a good idea, but if the seller is not willing to provide it, can the buyer demand it?

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Bertrand
Bertrand 17 May 2017

First step to nationalisation of the private rented sector IMHO. Nanny state poking their noses into things yet again. I object, as a decent landlord, sometimes having to deal with some pretty awful tenants,...

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Izzy
Izzy 16 May 2017

This is such a great a post. I love the detail you've gone into. It's a very useful article for helping those who are looking at deciding which sector they would like to go into! When I first started investing...

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paul burnham
paul burnham 30 Apr 2017

Jeremy Corbyn's pledge that a Labour government would build 500,000 new council houses must electrify the general election campaign. Reliance on markets and the profit motive has brought huge housing-related...

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CommercialTrust
CommercialTrust 28 Apr 2017

Sadiq Khan?s announcement of an online database of landlords and letting agents who have been convicted of housing offences, appears on face value to be a variation of the already implemented Database

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warren
warren 26 Apr 2017

You're very welcome Mary! Glad you enjoyed them :)

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Mary Ward
Mary Ward 26 Apr 2017

Thank you for the wonderful ideas. First impressions can make or break a deal. It's sadly that many homeowners drop the kerb to create an off-street parking space.

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Tony Gimple
Tony Gimple 14 Apr 2017

I'm not at all surprised that so many landlords are still confused about what the tax changes really mean and how it will affect them. In particular, the blind rush to incorporation is leaving landlords...

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