You are here: Home - News -

Landlords add £15.9bn to economy, study shows

by:
  • 12/05/2017
  • 0
Landlords add £15.9bn to economy, study shows
The UK economy could lose as much as £500m as a result of landlords cutting back on spending, a study has found.

According to research by Kent Reliance, landlords currently contribute £15.9bn to the British economy with average spending of £3,632 before tax per property.

The cost of property upkeep, maintenance, and servicing is the largest outlay (£5.5bn). Landlords spend £2bn in service charges and ground rent, £963m on insurance, £904m on utilities, and a further £1.1bn on other associated costs of letting a property.

However, the study revealed that cuts to landlord tax relief together with hikes in Stamp Duty is leading many landlords to rethink their spending. Over a third of those landlords surveyed (36%) say they are already reducing or planning to reduce their spending, while one in five are looking to raise rents.

John Eastgate (pictured), sales and marketing director of Kent Reliance’s parent company OneSavings Bank, said: “Landlords may seem like an easy target for political point scoring, but they play a vital role in the economy. Not only do they house a huge proportion of the country’s workforce, bridging the housing demand and supply gap, their spending supports thousands of jobs – whether builders, cleaners, lawyers and accountants or letting agents.

“Trying to tackle the housing crisis by targeting landlords with punitive taxes is very simple and politically highly palatable, but has unintended consequences. Either it means less work for all those who support the property industry, or it means tenants will have to foot the bill for the government’s tax raid, or both.

“One side effect of the recent changes, and rising running costs, will be the professionalisation of the sector as amateur and accidental landlords leave the market. There is nothing wrong with having fewer, bigger landlords, but that alone will not help more young people get homes.”

There are 1 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • RT @robjupp: Great day yesterday for donations to @MortSleepOut. With Gift Aid, we are now close to £17,000. It would be great to get to £2…

Read previous post:
interest rates
Bank Rate held at 0.25% despite rising inflation

The Bank of England’s Monetary Policy Committee voted by a majority of 7-1 to maintain the Bank Rate at the...

Close