Regions Generating Most Rent For Landlords
Tenants are paying almost £70bn of rent for landlords a year, research claims.
Buy-to-let specialist Sequre Property Investment has found the best regions for rent for landlords in relation to the local gross domestic product (GDP).
It found that across the UK, the average tenant pays £12,636 in rent each year equating to total rental income in excess of £69.4bn across the 2.2m privately rented homes.
When compared with the estimated GDP of the UK, the income generated via the private rental market is equivalent to 3.2 per cent.
London tops the list where the most rent is paid.
Each year £21.4bn is generated in rental income, equating to 4.3 per cent of the region’s GDP, Sequre Property said.
The South East, South West and East of England are the only other regions where the average monthly rent sits above the £1,000 threshold.
As a result, £9.1bn is generated in rental income across the South East on an annual basis, the equivalent to 2.8 per cent of the region’s GDP.
Across the South West and East of England, the private rental market brings in £6.1m each year, equivalent to 3.7% and 3.2% of their respective regional GDPs, according to the research.
Daniel Jackson, sales director at Sequre Property Investment, said: “Despite the government’s best efforts to deter landlords, the buy-to-let sector remains a huge area of investment, providing the vast majority of rental homes that are vital to so many across the UK.
While a ban on tenant evictions may have dampened rental income levels for many landlords over the last year or so, the sector continues to generate a staggering sum on an annual basis.”
He said there has been a resurgence of interest in the North West, in particular, due to the lower cost of investing coupled with a strong level of demand from tenants and the rental income on offer.
Jackson added: “As the rental market continues to refind its feet in the post-pandemic landscape, we expect the North West to match all areas of the South both in terms of market performance and when drawing investment from those either entering the sector or expanding their portfolios.”
|Location||Private rented stock est||Average annual rent||Est annual private rental income||Est GDP full number (2019)||Est annual private rent total value as % of GDP|
|East of England||497,000||£12,252||£6,089,244,000||£190,962,000,000||3.20%|
|West Midlands region||451,000||£9,480||£4,275,480,000||£163,624,000,000||2.60%|
|Yorkshire and the Humber||482,000||£8,688||£4,187,616,000||£146,746,000,000||2.90%|
|Sources||Gov.uk, Gov.wales, Gov.Scot, NISRA||HomeLet||Private rental stock x average annual rent||Office for National Statistics & Statista