Still worth it? Landlords keep only £39.75 of every £100 rent
Summary
The article reports research from Let Compliance suggesting that landlords retain a relatively small share of rental income after mortgage interest, income tax and compulsory fees are deducted. It also highlights wide regional variation in the time needed to recover a deposit from rent, with the position described as especially challenging for higher-rate taxpayers.
Why it matters
This is relevant to residential property surveyors because landlord profitability affects investor appetite, rental supply and local market dynamics. It also points to potential future compliance costs and tax changes that may influence buy-to-let viability and transaction activity.
Key points
- Let Compliance estimates a basic-rate landlord keeps £39.75 of every £100 of rent after key deductions.
- Mortgage interest is identified as the largest deduction, followed by income tax and compulsory fees.
- The study says higher-rate landlords in almost all England councils pay more tax than they keep from the property.
- Regional returns vary significantly, with much faster deposit recovery in Boston than in Kensington and Chelsea.
- The article flags possible additional costs from a future landlord ombudsman and a planned property income tax rise from April 2027.
This is an RPSA summary of a publicly available article. The full content remains with the original publisher.
