8:30 AM, 25th August 2022, About A year ago 3
Landlords are being warned that their rental property maintenance costs now account for more than a fifth of the average rental income of a property.
According to research by property maintenance solution provider, Help me Fix, the average cost of repairs has risen by 4.7% since the start of the year.
The firm has analysed the current cost of maintaining a property and how this has changed between January and June, as well as the proportion of rental income required to ensure a property remains fit for purpose.
Their research shows that the current annual cost of maintaining a rental property now sits at an average of £2,864 across the UK.
This is a 4.7% increase since January, with an increase in the cost of materials and services, such as qualified tradespeople, contributing to the rise.
London is home to the highest annual maintenance cost at £5,379, but it’s the East Midlands where this cost has increased the most since January, climbing by 6%.
With the average UK rent currently sitting at £13,524, this means that the cost of maintaining the average rental property now requires 21.2% of rental income.
This cost is highest in the East of England, where maintenance costs now account for 27.3% of the total average annual rental income, with the South East not far behind at 27%.
The proportion of rental income required to cover maintenance costs also sits above the national average in the East Midlands (26.2%), the South West (25.3%), the West Midlands (25.3%), London (24%), Wales (23.1%) and the North East (22.3%).
Ettan Bazil, the chief executive of Help me Fix, said: “With inflation currently at a 40-year high, the cost of maintaining a rental property has climbed by quite some margin since the start of the year.
“However, for many landlords and professional rental management firms, the escalating cost of materials has long been an issue.”
He added: “At the same time, the pandemic restrictions imposed during the numerous lockdowns have really shone a light on tenant welfare when it comes to the quality of accommodation.
“With the likes of the Build to Rent sector also driving standards upwards in this respect, it’s no longer acceptable to subject a tenant to subpar living conditions.
“So, while maintenance costs are now swallowing a considerable chunk of a rental property’s earning potential, it’s a necessity that simply can’t be ignored.”
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