Landlord costs surge as income stalls – HMRC

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Landlord costs surge as income stalls – HMRC

The declared expenses of the UK’s individual landlords and partnerships jumped 11% in a year while their total property income barely moved, new HMRC figures reveal.

Allowable property expenses reached £34.75 billion in 2024/25, compared with declared income of £58.99 billion.

The income figure was virtually unchanged from £59 billion in the previous tax year.

Average property income per landlord edged up from £20,300 to a five-year high of £20,500.

However, average expenses rose 12% to £13,700, underlining the faster growth in the costs being reported to HMRC.

Landlord expenses rocket

The longer-term figures show an even bigger gap with property income increasing by 26%, while declared expenses climbed by 56% between 2020/21 and 2024/25.

Residential finance costs were the largest expense, accounting for £12.82 billion, or 37% of everything claimed.

Some 1.15 million landlords reported costs in this category.

Repairs and maintenance produced the next largest bill at £6.41 billion, followed by other allowable expenses at £4.58 billion and legal, management and professional fees at £4.16 billion.

Rent, rates and insurance accounted for a further £3.81 billion.

Most landlords claim expenses

Around 1.92 million landlords, or 66.2%, claimed for repairs and maintenance, while 66.1% reported rent, rates or insurance costs.

In total, 2.54 million landlords claimed at least one form of property expense, representing 87.7% of those covered by the statistics.

HMRC recorded 2.88 million unincorporated landlords declaring property income in 2024/25, up from 2.81 million four years earlier.

Of these, 2.85 million were individuals completing Self Assessment returns.

The remaining 30,000 were partnerships, which declared £9.18 billion of the total property income.

‘Modest’ landlord returns

The data also highlights the relatively modest sums declared by a large section of the sector.

Around 1.3 million landlords reported property income of £10,000 or less during the year, equivalent to 45% of the unincorporated landlord population.

Property income remained concentrated among landlords living in London and the South East.

London-based landlords accounted for 17% of those declaring income but received 28% of the total.

Where landlords live

Together, London and the South East were home to 33% of landlords and accounted for 44% of declared property income.

They also represented 52% of all property expenses, despite making up 34% of landlords claiming costs.

Furnished holiday lets accounted for a comparatively small part of the market.

Around 130,000 unincorporated landlords declared £2.46 billion from UK furnished holiday accommodation, representing 4% of total property income.

The data covers income declared through Income Tax Self Assessment and excludes incorporated property businesses.

They also leave out individuals whose property income did not meet the threshold for inclusion in Self Assessment.

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US renters flock to Britain in search of cheaper rents

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US renters flock to Britain in search of cheaper rents

More American renters are moving to the UK for cheaper rents since President Trump took office, according to new research.

Goodlord analysed more than 300,000 tenancy agreements signed over the past two years, comparing the findings with data from 2023 and 2024.

Goodlord claims a combination of President Trump’s controversial political agenda and the opportunity to swap expensive US cities for comparatively cheaper rents in the UK has encouraged more Americans to make the move.

Scotland sees surge in American renters

According to the data, since the President began his second term 18 months ago, there has been a 32% increase in the number of Americans signing tenancy agreements on this side of the Atlantic.

Scotland, home to President Trump’s International golf course, leads the way, with a 63% increase in the number of US citizens signing tenancies between January 2025 and June 2026, compared with the previous 18 months.

That stands in stark contrast to the US, where the median monthly rent for an apartment in Manhattan reached $5,000 (£3,766) earlier this year.

By comparison, American renters in Scotland are paying an average of £1,711 ($2,256) a month.

The second most popular region for US citizens looking to cross the Atlantic is the North West of England, which recorded a 60% rise in the number of American renters signing tenancy agreements.

Comparatively low rents on this side of the Atlantic

William Reeve, CEO at Goodlord, said: “These figures give further weight to claims that volatility in US politics is driving many Americans to seek a new home in the UK. But while the President’s controversial policy agenda will be the key push factor for some, comparatively low rents on this side of the Atlantic also appear to make the UK a more attractive place to rent.

“Though the UK’s lower salaries may initially come as a shock to young professionals crossing the pond, cheaper rents in British cities seem to soften the blow, convincing many to make the switch.”

The figures also reveal there’s been a 29% increase in US citizens renting across Greater London since the beginning of Trump’s second term.

Every region across Great Britain has seen an increase in tenancies taken out by US renters over the last 18 months, with the smallest rise recorded in the North East of England, which saw an increase of 2%.

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