HMRC Reports Major Drop In Landlords Income
A recent report from the HMRC states that PRS landlords income has fallen by 4% but for those renting out properties via Airbnb have seen their income increasing.
In spite of ever increasing rents an HMRC report on PRS lettings’ activity finds that private landlords’ income dropped by 4% from £49.4 billion during 2020/21 to £47.44 billion for 2022/23.
In the same period the number of private landlords fell by 0.7% however during the same period the number of furnished holiday lets soared by 8.3%.
HMRC’s report surveyed 14 regions which found that in the main – 9 regions – suffered a drop in income, whilst there was no change for two regions and just three which experienced rises.
The report found the biggest drop in income was in London at 12.5% followed by Scotland (with imposed rent controls) where income fell by 6.9%.
It also reported that any rises were minor and the best increase was in the North West at less than 1%.
The average rental property income dropped from £17,300 in 2021/22 down to £16,700 in 2022/23,and an average of under £10,000 per annum.
The decreases when also taking into consideration the expected tax rises in October, ever increasing legislation has caused a respected leading tax, accounting and business advisory firm, to send out a stark warning to tenants that they could be facing being made homeless.
A spokesperson, says: “This has included a restriction in the proportion of their mortgage interest that can be deducted when calculating their tax liability.”
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