Annual landlord revenue tops £32 billion Annual landlord revenue tops £32 billion

Annual landlord revenue tops £32 billion

New analysis by Direct Line for Business (DL4B) reveals that landlords in England are witnessing a booming rental market, with earnings from rental payments in excess of £32 billion per year1&2, or almost £2.7 billion per month.

  • Outside the capital, Bournemouth is the rental capital of England - 30 per cent of households privately rented
  • London landlords see rental incomes in excess of £14 billion per year
  • Mobile Landlord App set to help landlords manage property portfolios

New analysis by Direct Line for Business (DL4B) reveals that landlords in England are witnessing a booming rental market, with earnings from rental payments in excess of £32 billion per year [1&2], or almost £2.7 billion per month.

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. In total, 44 per cent 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 (£521 million) and Manchester (£401 million). Check out our interactive rental heat map to see what the trends look like across the country. 

The research reveals that London and the Home Counties dominate rental incomes, with the highest average rents sitting in Central London (£19,596 per year or £1,633 per month). Elmbridge, Surrey, has the highest rents outside London, worth (£18,948 per year or £1,579 per month), followed by South Bucks, 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. 

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

Outside of London, Bournemouth leads the line in terms of private rentals with 30 per cent of households there privately rented. The isles of Scilly (29.7 per cent) and Brighton and Hove (29.6 per cent) follow in second and third place respectively. Across the country, Central London has the highest proportion of private renters, at 30.7 per cent. 

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.”

To help landlords keep track of charges paid, ongoing expenses and to assist in calculating the yield on their portfolio, Direct Line for Business (DL4B) has launched a new landlord app, Mobile Landlord. This app enables landlords to manage up to five properties on the go through a single online, mobile portal. The Mobile Landlord is free to download and available immediately on both iOS and Android.

For more information on DL4B landlord insurance, please click here

Or visit the Landlord Knowledge Centre for useful tips and guidance: 

Notes to editors

  1. Source: 2011 Census: KS402UK Tenure, local authorities in the United Kingdom
  2. Valuation Office Agency – Private Rental Market Statistics, 10 June 2014

Citigate Dewe Rogerson
Amrit Nijjer
Tel: 020 7282 2803
Email: amrit.nijjer@citigatedr.co.uk

Direct Line Group
Simon Henrick
Head of News and Issues
Tel: 0208 313 5965
Mobile: 07833 166 717
Email: simon.henrick@directlinegroup.co.uk

Direct Line for Business

Launched in 2007 Direct Line for Business provides a range of insurance products for the small business sector direct by phone or online.

Direct Line for Business insurance policies are underwritten by U K Insurance Limited, Registered office: The Wharf, Neville Street, Leeds LS1 4AZ. Registered in England No 1179980. U K Insurance Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Direct Line for Business and UK Insurance limited are both part of Direct Line Insurance Group plc.

Customers can find out more about Direct Line for Business products or get a quote by calling 0345 301 4827 or visiting www.directlineforbusiness.co.uk

Landlord Insurance Press Release

Added: 12th September 2014