Landlord incomes have hit a record £89,000, up £14,000 in the last quarter and £16,000 higher than a year ago.

The latest Landlord Trends research from Pegasus Insight in Q1 reveals that incomes across the UK have risen sharply as strong tenant demand, long tenancy lengths and high levels of tenant satisfaction continue to underpin the PRS - despite ongoing regulatory and economic uncertainty.

The survey found that the average annual spend for an HMO landlord is £36,214 (+£496 year-on-year) and £20,539 for non-HMO landlords (+£935), although these figures don’t include tax, acquisition, voids, or marketing a property to let.

Alongside the rise in rental income, the average landlord portfolio is now valued at £1.69 million, reflecting the continued strength of the underlying market.

Evidence

Its survey of both leveraged and non-leveraged NRLA members comes alongside evidence from Pegasus Insight’s Tenant Trends research showing that the average tenant has spent more than five years in their current property, while 76% say they are satisfied with the service provided by their landlord or letting agent.

The findings suggest that landlord income growth is being supported not simply by rent increases, but by strong occupancy levels, low tenant turnover and sustained demand for rental accommodation, according to founder and MD Mark Long (pictured left).

“These findings suggest that, despite the uncertainty surrounding future regulation, the core relationship between landlords and tenants remains remarkably resilient,” he adds.

London

More research from London lettings and estate agent Benham and Reeves reveals that Tower Hamlets and Newham are the London boroughs delivering strongest buy-to-let returns as rental yields climb across the capital. Its analysis found that the average rental yield now stands at 5%, up from 4.9% a year ago.

Tower Hamlets has an estimated gross rental yield of 6.3% followed by Newham with 6%, up from 5.2% a year ago. Only two London boroughs saw a reduction in yields over the past year - Brent and Waltham Forest, both of which saw yields shrink by -0.1%.

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