Landlords in England are witnessing a booming rental market, with earnings from rental payments in excess of £32 billion per year or almost £2.7 billion per month, according to new research.
London landlords collect the largest proportion of private rental income in England at £14 billion per year, more than the North East, East Midlands, West Midlands, Yorkshire and East Anglia combined, says the report from Direct Line for Business.
In total, 44% of the entire country’s rent is paid in London. Outside the capital, Leeds pays the greatest amount of any city, with annual private rent totalling £565 million, followed by Birmingham at £521 million and Manchester at £401 million.
The research also reveals that London and the Home Counties dominate rental incomes, with the highest average rents in Inner London at £19,596 per year or £1,633 per month.
Elmbridge in Surrey, has the highest rents outside London, worth £18,948 per year or £1,579 per month, followed by South Buckinghamshire where monthly rental costs are £1,530 in the private sector.
Despite this dominance, landlords outside of these regions can also make a healthy rental income. Many areas outside the London commuter belt can command high rental costs, for example Bath and North Somerset, and the Cotswolds both command annual rental incomes of more than £11,000 per year.
Outside of London, Bournemouth leads the line in terms of private rentals with 30% of households there privately rented. The isles of Scilly at 29.7% and Brighton and Hove at 29.6% follow in second and third place respectively. Across the country, Inner London has the highest proportion of private renters, at 30.7%.
‘Buy to let is becoming an increasingly attractive option for people as property prices continue to soar. Landlords and potential landlords looking to take advantage of this should also appreciate the risks involved,’ said Jazz Gakhal head of Direct Line for Business.
‘Bad payers and potential damage to property are but just a few of the costs that can lead to landlords paying out 25% of the revenues they receive in rental payments annually. Taking the necessary precautions such as letting through an agency and taking out landlord insurance can help to alleviate concerns and ease the rental process,’ he added.
To help landlords keep track of charges paid, ongoing expenses and to assist in calculating the yield on their portfolio Direct Line for Business has launched a new landlord app, Mobile Landlord that enables landlords to manage up to five properties on the go through a single online, mobile portal. Mobile Landlord is free to download and available on both iOS and Android.