Property costs outpace rental growth for landlords
Summary
New research based on HMRC rental income statistics suggests that costs for unincorporated landlords have risen much faster than rental income over the past five years. The largest expense remains finance costs, with repairs and maintenance also a significant and growing burden, while the article argues that current tax treatment disadvantages individual landlords compared with company ownership.
Why it matters
Surveyors involved in lettings, valuation and landlord advisory work should be aware that rising operating costs may affect landlord viability, investment decisions and property management standards. The findings also point to continued pressure on the private rented sector, which can influence stock quality, compliance behaviour and market stability.
Key points
- Unincorporated landlords declared £34.75bn of allowable expenses against £58.99bn of rental income in 2024/25.
- Over five years, expenses rose 56% while rental income increased 26%, pushing the cost share of income from 47.8% to 58.9%.
- Residential finance costs were the largest expense at £12.82bn, followed by repairs and maintenance at £6.41bn.
- The article highlights a tax disadvantage for unincorporated landlords compared with company landlords on mortgage interest relief.
- The sector is described as facing pressure to fund upgrades and standards compliance amid rising costs.
This is an RPSA summary of a publicly available article. The full content remains with the original publisher.
