61% of Landlord’s gross rental income is £20,000 or less

The English Private Landlord Survey profile of landlords shows the average gross rental income for all landlords is only £15,000 and that 61% have a gross rental income of £20,000 or less.

By the time you factor in ever increasing costs and taxation it should be obvious that being a landlord is not some get rich quick scheme full of ‘Fat Cats’.

The profile goes on to say that 26% of landlords reported gross rental income of £20,000 to £49,000 and 13% £50,000 or more.

85% of individual landlords owned between one and four properties with 47% owning only one rental property. The remaining 15% of individual landlords owned five or more properties. Despite Section 24 mortgage interest relief restrictions 94% of landlords still own property in their individual name and not a limited company.

When asked why individuals became landlords at first 44% said as a pension contribution, 34% to supplement earnings or income, 7% to provide a home for a relative, child or friend, 6% because they inherited or were given their first rental property and only 4% became a landlord in order to let property as a full-time business.

The average age of a Landlord is 57 compared to the population average age of 39.

29% of landlords were employed full-time and 11% part-time. 33% of landlords were retired. 16%of landlords were self-employed (not as landlord). 13% self-employed as a landlord. Over half of tenancies were represented either by landlords who were retired 28% or those self-employed as a landlord 30%.

Landlords were asked for their total gross income (excluding rental income) over the previous 12 months:

• The average non-rental income was £25,000 per annum
• 39% reported a gross income of less than £20,000
• 38% reported between £20,000 and £49,999
• 24% reported £50,000 or more

Landlords were asked the approximate value of their total rental property portfolio:

• The average total market value of landlord rental portfolios was £400,000
• 23% of landlords had portfolios they valued at less than £200,000
• 36% had portfolios they valued from £200,000 to £499,999
• 22% had a portfolio they valued from £500,000 to £999,999
• Only 18% reported rental property portfolios valued at £1 million or more

LINK TO SOURCE DATA