Analysis from Direct Line for Business has revealed that English landlords are earning in excess of £32 billion pounds per year, equating to around £2.7 billion per month, showing the true extent of the rental market boom.
Unsurprisingly, London landlords collect the highest proportion of rental income in England, earning £14 billion per year, a total which exceeds that of the North East, East Midlands, West Midlands, Yorkshire and East Anglia combined. 44 per cent of the entire country’s rent is taken in London, followed by Leeds, Birmingham and Manchester in which annual private rent totals £565 million, £521 million and £401 million respectively.
In terms of rental incomes, London and the Home Counties dominate again. Average central London rents reach £19,596 per year, equating to £1,633 per month. Elmbridge, Surrey, reaches rents of £18,948 or £1,579 monthly, whilst South Bucks achieves monthly rents of £1,530. However, other areas also achieve healthy rental income. Bath, North Somerset and the Cotswolds all command annual rental incomes exceeding £11,000 yearly.
| Top five areas in terms of total private rental costs (per month) | Most expensive rental areas (per month) | ||
|---|---|---|---|
| Inner London | £684,346,209 | Central London | £1,633 |
| Leeds | £47,056,464 | Elmbridge | £1,579 |
| Birmingham | £43,455,760 | South Bucks | £1,530 |
| Manchester | £33,447,750 | Three Rivers | £1,372 |
| Liverpool | £20,474,960 | Sevenoaks | £1,345 |
Source: Direct Line for Business
Whilst London again tops the league of areas with the highest proportion of private rentals, Bournemouth follows closely behind, with 30 per cent of households there privately let. The isles of Scilly and Brighton and Hove also score highly, at 29.7 and 29.6 per cent respectively. 30.7 per cent of households in London are part of the private rental sector.
| Top five areas with rented households | |
|---|---|
| Inner London | 30.7% |
| Bournemouth UA | 30.0% |
| Isles of Scilly UA | 29.7% |
| Brighton and Hove UA | 29.6% |
| Hastings | 28.8% |
Source: Direct Line for Business
Jazz Gakhal head of Direct Line for Business said: “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. Agency fees, bad payers, potential damage to property are but just a few of the costs that can lead to landlords paying out 25 per cent 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.”
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Happy to hear Birmingham is becoming more liveable and just a better city.