Crisis as HMRC data shows landlord expenses soaring
Summary
HMRC data analysed by Hello Neighbour suggests that landlords’ allowable expenses have risen much faster than rental income over the past five years, with costs now consuming a larger share of receipts. The article highlights finance costs as the largest expense category and links rising outgoings to upcoming statutory obligations such as EPC C requirements and the future Decent Homes Standard.
Why it matters
Surveyors advising landlords, investors or lenders may see increased pressure on asset viability, maintenance budgets and compliance planning as operating costs rise. The article also underscores the financial implications of energy-efficiency and housing-standard upgrades for the private rented sector.
Key points
- Allowable expenses rose 56% over five years, versus 26% growth in rental income.
- Average declared expenses reached £13,700 per landlord in 2024-25, with average rental income at £20,500.
- Repairs and maintenance remained the most commonly claimed expense, while finance costs were the largest single category.
- The article points to upcoming obligations including EPC C by 2030 and the Decent Homes Standard from 2035.
- Section 24 continues to disadvantage individual landlords relative to companies holding identical properties.
This is an RPSA summary of a publicly available article. The full content remains with the original publisher.
