Still worth it? Landlords keep only £39.75 of every £100 rent
Mortgage interest takes £49.10, income tax £9.94 and compulsory fees £1.21, according to a study by Let Compliance.
A landlord on the basic rate of income tax keeps £39.75 of every £100 of rent, new research suggests.
Mortgage interest takes £49.10, income tax £9.94 and compulsory fees £1.21, according to a study by Let Compliance.
What remains is before letting agent fees, repairs, insurance or a single empty month.
Higher-rate landlords
For a higher-rate taxpayer the position is sharper still.
The study claims that in 292 of England’s 293 councils, a higher-rate landlord with a 25% deposit pays more income tax on the property than they keep from it.
Many smaller landlords will decide the risk is no longer worth it.”
A landlord buying a typically priced flat in England with a 25% deposit would take 10.5 years to recover the deposit from rent.
There are significant regional differences. In Boston it takes 4.4 years, while in Kensington and Chelsea it takes a massive 64.2 years.
Let Compliance, which sells compliance services to landlords, has published figures for every council along with its method and the underlying data.
Erdem Volkan, Founder of LetCompliance, warned that landlords face more deductions.
Volkan explained: “More is on the way: an ombudsman every landlord will have to join, whose fee is not yet set, and a Budget plan to raise property income tax again from April 2027.
“Many smaller landlords will decide the risk is no longer worth it. And for a young couple hoping to build security through property, finding that money and waiting a decade to see it back is no longer a plan. It is a dream.”
