Editor's note: This brief was summarised by The Property AI Team from a report by Property118. Read the original article for full details.
Landlord Costs Rise Sharply as Rental Income Stagnates, HMRC Reports
New figures from HMRC reveal that the declared expenses of UK individual landlords and partnerships increased by 11% in a year, while their total property income saw little change. According to Property118, allowable property expenses reached £34.75 billion in 2024/25, compared with declared income of £58.99 billion.
The reported income figure was virtually unchanged from the previous tax year, which stood at £59 billion. This indicates that while landlords are facing significantly higher costs, their rental income has not kept pace.
For letting agents and inventory clerks, these figures highlight the growing financial pressures on landlords, which may impact decisions around property management, maintenance, and investment in the private rented sector.
Source: Property118