Newly released data from His Majesty’s Revenue and Customs (HMRC) paints a remarkable picture of the ever-evolving landscape of the United Kingdom’s private rented sector (PRS). In the fiscal year spanning 2021 to 2022, the number of unincorporated landlords in the PRS reached a record high of 2.82 million, marking a substantial increase from 2.73 million in the 2017-2018 period.
These statistics, derived from Income Tax Self-Assessment (ITSA) returns, further indicate a substantial surge in unincorporated landlords’ property income, with a total of £48.87 billion declared for the 2021-2022 period, as compared to £46.37 billion in the preceding fiscal year (2020-2021). The average income for landlords during this period stood at £17,300.
London Dominates Property Income
Intriguingly, the HMRC data showcases the concentration of property income in the nation’s capital, London, where 16% of unincorporated landlords are based, contributing to a significant 26% share of all property income reported by unincorporated landlords. It is essential to note that the report specifically excludes incorporated landlords with property income and individual landlords whose earnings fall below the threshold necessitating an ITSA return.
Increasing Income Trends
The report underscores the fact that the overwhelming majority of unincorporated landlords, a staggering 99%, are individuals who disclose their property income as part of their self-assessment tax returns. This data demonstrates a notable uptick in the average property income, which rose from £16,300 in 2017-2018 to £17,300 during the 2021-2022 fiscal year. This growth represents a substantial 5% increase over this five-year period.
Robust Growth in Total Property Income
The HMRC data further illuminates the remarkable trajectory of the UK’s property income, which surged by an impressive 10% between 2017-2018 and 2021-2022. This expansion can be attributed to both an increase in the average property income and the growing number of individuals reporting their property income.
Regional Disparities
Unveiling regional disparities, the report showcases the contributions of unincorporated landlords in Wales, Scotland, and Northern Ireland, accounting for 3%, 5%, and 1% of the total property income, respectively. Among England’s regions, the North East reported the smallest proportion of property income, standing at just 2%.
As the private rented sector continues to evolve, these figures emphasize the increasing prominence of unincorporated landlords in the UK’s property landscape. With London leading the way, these statistics provide a critical snapshot of the state of property income in the country, suggesting potential implications for housing policies and the broader economic landscape.