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Rental income stands at £44.7bn – HMRC

Anna Sagar
Written By:
Posted:
August 30, 2024
Updated:
August 30, 2024

Total rental income from unincorporated landlords came to £47.4bn between 2022 and 2023, figures have shown.

According to the latest figures from HMRC, the total rental income from unincorporated landlords fell from £4.94bn in 2021-22 to its current figure.

The total number of unincorporated landlords that declared income from renting property in the period came to 2.84 million.

Within that figure, 2.81 million were individuals, with the remainder coming from partnerships, with £44.7bn of total income declared coming from individual landlords.

HMRC found that the average income from UK property stood at £16,800, which has stayed stable from 2018-19.

Over the five-year period, the lowest average annual UK property income was £16,600 in 2020-21, and the highest was £17,300 in 2021-22.

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In 2022-23, a third of all unincorporated landlords that declared income from a UK property were based in London or the South East combined, making up 41% of all income declared from this segment.

Around 17% of all unincorporated landlords that declared income from a UK property were based in London, accounting for 24% of all income declared.

Wales, Scotland, and Northern Ireland accounted for 3%, 5% and 2% of total property income respectively.

 

Furnished holiday let income came to £2.29bn

Income from furnished holiday lets came to £2.29bn during the period, with 130,000 unincorporated landlords declaring furnished holiday letting income. This is around 5% of UK rental market income.

The report noted that total income from furnished holiday lets fell from £2.5bn in 2021-22.

HMRC said that the total income from UK furnished holiday lets rose by 67% in the five years between 2018 and 2023, which it attributed to an “increase in both average furnished holiday lettings income and the number of individuals reporting furnished holiday letting income”.

The government confirmed that the furnished holiday let scheme would be abolished next year.