HMRC report reveals shock fall in landlord income

According to HMRC, landlords’ income has dropped by 4% for traditional operators but numbers of those renting via Airbnb has increased.

To let board hmrc landlords

Despite soaring rents an HMRC report on lettings activity shows that income from private landlords fell by 4% from £49.4 billion during 2020/21 to £47.44 billion for 2022/23.

At the same time the number of private landlords decreased by 0.7% but the number of furnished holiday lets increased by 8.3%.

Of the 14 regions surveyed, income fell in the majority (nine regions), but stayed the same in two and rose in just three.

Falls

One of the biggest falls recorded by HMRC was in London at 12.5%. The next biggest was in rent-controlled Scotland where income was down by 6.9%, the report shows.

Any rises were small, with the largest in the North West where income rose by less than 1%.

Heather Powell, Head of Property Tax, Blick Rothenberg

And the average rental property income fell from £17,300 in 21/22 to £16,700 in 22/23, with the majority generating under £10,000 per annum.

The falls, when combined with looming tax rises and legislation, have led to respected business advisory firm, Blick Rothenberg, warning tenants could soon be left without homes.

“This has included a restriction in the proportion of their mortgage interest that can be deducted when calculating their tax liability.”


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