The hidden costs of being a landlord in London have been revealed in the latest research from BDRC Continental’s Landlords’ Panel and include maintenance, insurance and accountancy fees.
Despite the costs, it has been deemed that the pros outweigh the cons in letting out a property at present.
Private landlords are seeing stronger near-term prospects for capital gains and rental yields. However, as this new part of the survey shows, maintenance, insurance, professional service fees and other running costs can amount to over £8,000 per annum in inner London, on top of the mortgage.
BDRC Continental’s Landlords’ Panel reveals that just under one quarter (23 per cent), of private landlords letting out property in inner London spent over £5,000 on maintenance in the last 12 months. Insurance was the next highest cost with 14 per cent of landlords spending £2,000 or more, and 10 per cent spending the same amount on accountancy fees. 11 per cent spent between £1,001 and £2000 on estate agency fees with 12 per cent paying £2,000 or more.
The figures aren’t much lower in outer London. Again almost one quarter (24 per cent) of private landlords spent over £5,000 on maintenance,
Commenting on the latest Landlords’ Panel findings, Mark Long, Director for BDRC Continental, says: “There are a lot of costs associated with being a private landlord, not least maintenance, insurance and professional advice from accountants and solicitors. However our survey tells us that the market for private rental across London is strong and landlords feel positive about their prospects, so despite the costs, the market for letting property in the capital in London remains buoyant and profitable.”
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