Landlords in England are enjoying a booming rental market, according to new research, with total rental payments exceeding £32 billion per year. The largest proportion of private rental income in England was collected in London, with a total of £14 billion collected by landlords in the capital.
This figure represents 44% of the entire country’s rent and was more than the North East, East Midlands, West Midlands, Yorkshire and East Anglia combined. Outside of London, residents of Leeds pay the greatest amount of any city, with annual private rent totalling £565 million, followed by Birmingham (£521 million) and Manchester (£401 million).
London and the Home Counties dominated rental incomes, according to the research, with average rents in inner London at £19,596 per year or £1,633 per month. The highest rents outside of London were found to be in Elmbridge in Surrey, worth £18,948 per year or £1,579 per month, followed by South Buckinghamshire, where typical monthly rental costs are £1,530.
“Buy to let investment is an increasingly attractive option for people as prices continue to rise, those thinking about it need to consider the risks involved too though,” says Gaurav Ahluwalia of Discount Landlord.
“Potential landlords need to factor in money for maintenance and repairs to the property and realise that tenants do not always pay on time, or at all. Thankfully landlord and rent guarantee insurance can help alleviate some of these concerns,” Gaurav added.
Despite London’s dominance, landlords outside of these regions can also make a healthy rental income. For example in Bath, North Somerset and the Cotswolds, landlords can command rental incomes of more £11,000 per year. In terms of volume of private rentals, inner London leads the way with 30.7% of the population privately renting, followed by Bournemouth with 30%, the isles of Scilly (29.7%) and Brighton and Hove at (29.6%).
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