Landlords contribute £16 billion per year to UK economy

Landlords contribute £16 billion per year to UK economy

According to a new report by Kent Reliance, the savings specialists, landlord are generating around £16 billion pounds every year for the UK economy.

The study revealed that the average cost of running a property in the UK rental market is just over £3,600 before tax. This includes the typical costs that a landlord has to deal with such as agents or management fees, maintenance and repairs, service charges, insurance and legal fees.

The spending from landlords contributes to jobs across a wide range of sectors including letting agents, builders, solicitors, property managers and many more businesses who earn their living from the private rented sector. And if you throw into the mix the amount of stamp duty and income tax that landlords have to pay, it’s easy to see how this £16 billion pounds a year stacks up.

These figures bring into sharp focus the potential dangers of the UK government imposing too many measures and punitive taxes on landlords. If the chancellor continues to target the rental sector for revenue then it runs the risk of landlords leaving the sector, selling their properties which ultimately means less tax for the UK coffers and also damaging jobs in the sectors that support the rental sector.

It will be interesting to see how important this £16 billion per annum is to the government and whether there will be any concessions made over the next 12 months.