Landlord income defies doom predictions to reach £55.5bn
Despite prospect of increases in tax and regulation, the latest HMRC figures show rental revenue has reached a five-year high.
Landlord income has surged to £55.5 billion, defying widespread predictions of a looming crisis in the sector as the Renters’ Rights Bill loomed and tax burdens mounted, according to the latest HMRC data.
And, as the 2023-24 figures exclude incorporated businesses, they are likely to mostly relate to small-scale and ‘accidental landlords’ who are considered most at risk of exiting the market as a result of the increasingly negative tax and regulatory environment.
Income and Landlord numbers up
The figures show there has been a £2.7 billion increase in income from the previous year, which marks the highest total in five years.
Landlord numbers rose too, with 2.86 million unincorporated landlords declaring income during 2023-24, up from 2.84 million in 2022-23 and 2.81 million in 2019-20. Individual landlords reported £47.6 billion in income, and partnerships generated £7.9 billion.
The average landlord income jumped to £19,400 in 2023-24. That is a £2,500 or 15% rise over the previous four years and was up from £18,300 in 2022-23.
Holiday let operators also performed strongly, with 130,000 landlords declaring £2.43 billion in furnished holiday let income, up from £2.36 billion in 2022-23.
Expenses also up
The data shows, though, that expenses have climbed sharply, with landlords declaring £29.1 billion in costs during 2023-24. The most common expense categories were rent, rates and insurance (66.2% of landlords claiming £3.55 billion) and repairs and maintenance (66.1% claiming £6.2 billion).
Unsurprisingly, mortgage interest payments and other financing costs made up one of the largest proportions of expenses at 31% (£9.1 billion). The average expenses declared rose by 14% between 2022-23 and 2023-24 to £11,500, the highest on record.
London continues to dominate the market, with 17% of all landlords based in the capital who account for 27% of total property income. Combined with the South East, these regions make up for a third of all landlords but generate 43% of national rental income.
You can read the full report here.
