With an increasing number of landlords across the country waking up to opportunities provided by buying outside of their local area, news that the North West of England is the third cheapest area to be a landlord is very welcome news.
A study undertaken by Kent Reliance for Intermediaries suggests that the average cost for a landlord operating in the North West of the country is £2,475 per year per rental property. The national average cost for landlords is £3,571.
The most significant cost that landlords have to bear is letting agent fees and property maintenance costs.
North West is more affordable than London
Unsurprisingly, London is the area with the most expensive average costs, coming in at £6,455 each year per property. Of course, rental fees are also higher in London, which means that London offers the lowest cost to rent proportion in England. The next most expensive region in England was the South East, with the East ranked as third.
Given that many landlords are concerned about initial costs and the threat of void periods, many would prefer to let outside of London. With a high demand for rental property in the Greater Manchester area, it is easy to see why many landlords will appreciate the chance to let with lower costs.
Get to know your average annual costs
For North West landlords, an average of £655 is spent each year on letting agent fees with the average cost of maintenance work being £555 on an annual basis. For ground rents and service charges, the average annual fee is £298. Other average costs in the North West include £149 for insurance, £107 for accountancy and legal fees while administrative costs and licences cost an average of £64 annually. Landlords worried about void periods should note that this amounts to an average of £369 annually in the North West.
Adrian Moloney, Sales Director of OneSavings Bank, released a statement, saying; “The significant economic contributions landlords make both at a local and national level is often overlooked. They support thousands of jobs through their spending and house a nation that is increasingly reliant on renting. Instead, landlords have faced punitive tax and regulatory changes, at a time when running costs are climbing.
“Policies that increase the cost and complexity of being a landlord don’t benefit tenants; quite the opposite. Property investors will seek to protect their business’s margins, whether cutting their spending on elements like property maintenance and improvement, or raising rents. The recent reforms are also deterring new investment, especially from amateur landlords. This does little to tackle the housing market’s chronic undersupply of property. ”
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