Property income from landlords reaches record levels pre-section 24

New official statistics from HM Revenue & Customs (HMRC) reveal that property income received by unincorporated landlords has reached its highest level in the past five years. Although this does not take into account the wide differences in what landlords actually earn after Section 24 mortgage interest relief restrictions.

The property rental income statistics for 2023–24 show 2.86 million unincorporated landlords declared rental income, with 99% being individuals reporting via Self Assessment tax returns.

Total property income rose to £55.53 billion, made up of £47.62 billion from private individual landlords and £7.9 billion from partnerships.

1.36 million unincorporated landlords declared £10,000 or less

According to the data, average income per unincorporated landlord climbed to £19,400 in 2023–24, up from £18,300 the year before and around 15% higher than in 2019–20, the highest average in five years.

However, the figures also show that income is unevenly spread, with some landlords earning much more and pushing up the average, while 1.36 million declared £10,000 or less in property income in 2023–24.

The statistics also reveal in 2023 to 2024, UK furnished holiday lettings accounted for £2.43 billion in property income, 4% of the UK rental market income.

Average expenses declared reached a record high

The data also shows average expenses declared reached a record high. Unincorporated landlords can claim allowable expenses specific to their property business.

The most common types are rent, rates and insurance (66.2%) and repairs and maintenance (66.1%).

The largest category of expenses was residential finance costs, with £9.05 billion claimed in 2023–24, accounting for 31% of all expenses set against UK property income. Overall, 87.7% of unincorporated landlords declared some form of expenses.

The data also reveals in 2023 to 2024, 18% of all unincorporated landlords that declared allowable expenses from a UK property were based in London. They account for 29% of all allowable expenses declared from UK property income by unincorporated landlords

In 2023 to 2024, 34% of all unincorporated landlords that declared allowable expenses from a UK property were based in London or the South East combined. They account for 45% of all allowable expenses declared from UK property income by unincorporated landlords.