Buy-to-let maintenance is costing private landlords up to 28% of their annual rental income, according to the latest research by Howsy.
The letting management platform found the cost of maintaining the average buy-to-let investment across the UK currently sits at £2,313.
On a regional basis, the East of England is home to the most expensive buy-to-let investment where upkeep is concerned, with this cost accounting for 28% of the average annual rental income.
The North East is the most affordable at 20% and perhaps surprisingly, London is the home to the fourth-lowest buy-to-let maintenance costs, accounting for just under a quarter - 23% - of the annual average rent of £20,364.
The best investment location to keep maintenance costs low is currently Glasgow, requiring 13% of the average annual rental income, followed by Inverclyde, West Dunbartonshire, and Midlothian, all at 14%.
Burnley, East Ayrshire, Belfast, and Falkirk all cost 15% maintanence, while Dundee and Clackmannanshire, both at 16%, were also among the lowest buy-to-let locations for maintenance costs.
Landlords with properties in London can typically expect to pay the lowest maintenance costs as a proportion of the average annual rent in Tower Hamlets (20%), followed by Barking and Dagenham (21%), Newham (21%), Greenwich (23%) and Hounslows (23%).
Calum Brannan, founder and CEO of Howsy, said: “Covering maintenance costs is an essential part of managing your buy-to-let investment as failing to do so will not only reduce the profitability of your investment as tenants look elsewhere, but it can also land you in hot water legally if your property is not fit for purpose.
Using the one per cent threshold of the purchase price of your property is a sensible place to start when budgeting for maintenance and although it acts as a rough rule of thumb, it should cover everything but the very worst damage to your property.
Of course, the government’s consistent attack on the profitability of the buy-to-let sector could have alternative consequences as landlords cut corners on maintenance to get by, but as our research shows, this doesn’t have to be the case.
The UK rental sector is a vast and varied one and investing in the right property, in the right place, will see operating costs remain palatable and profits remain robust.
However, with technology changing the face of the industry, landlords now have even more options at their disposal when it comes to keeping their investment profitable and all of their costs under one roof.
That’s the exact reason we launched Howsy Protect, as it not only guarantees rent if your tenant falls behind, but it protects against unforeseen repair costs. So rather than keep a chunk of rental income back for a worst case scenario, landlords can pay one consistent, manageable monthly cost and rest safe in the knowledge we’ve got them covered.”
Primary level - nations
|
Location
|
Average Annual Rental
|
Estimated annual maintenance
|
Average house price
|
Maintenance as a proportion of rent %
|
England
|
£10,224
|
£2,474
|
£247,426
|
24%
|
Wales
|
£6,182
|
£1,639
|
£163,936
|
27%
|
Scotland
|
£8,982
|
£1,519
|
£151,945
|
17%
|
Northern Ireland
|
£7,524
|
£1,379
|
£137,872
|
18%
|
|
|
|
|
|
United Kingdom
|
£8,232
|
£2,313
|
£231,265
|
28%
|
|
|
|
|
|
Secondary level - English regions
|
Location
|
Average Annual Rental
|
Estimated annual maintenance
|
Average house price
|
Maintenance as a proportion of rent %
|
East of England
|
£10,428
|
£2,908
|
£290,836
|
28%
|
South East
|
£11,976
|
£3,225
|
£322,532
|
27%
|
South West
|
£9,792
|
£2,566
|
£256,553
|
26%
|
East Midlands
|
£7,536
|
£1,936
|
£193,560
|
26%
|
West Midlands
|
£7,944
|
£1,987
|
£198,659
|
25%
|
London
|
£20,364
|
£4,719
|
£471,948
|
23%
|
North West
|
£7,452
|
£1,648
|
£164,822
|
22%
|
Yorkshire and The Humber
|
£7,404
|
£1,635
|
£163,541
|
22%
|
North East
|
£6,396
|
£1,289
|
£128,932
|
20%
|
|
|
|
|
|
Ranking - by lowest maintenance cost as a proportion of rent gained
|
Location
|
Average Annual Rental
|
Estimated annual maintenance
|
Average house price
|
Maintenance as a proportion of rent %
|
City of Glasgow
|
£10,596
|
£1,335
|
£133,453
|
13%
|
Inverclyde
|
£7,476
|
£1,033
|
£103,268
|
14%
|
West Dunbartonshire
|
£7,559
|
£1,052
|
£105,181
|
14%
|
Midlothian
|
£13,008
|
£1,874
|
£187,380
|
14%
|
Burnley
|
£5,544
|
£840
|
£84,029
|
15%
|
East Ayrshire
|
£6,336
|
£962
|
£96,233
|
15%
|
Belfast
|
£8,592
|
£1,312
|
£131,161
|
15%
|
Falkirk
|
£8,124
|
£1,245
|
£124,517
|
15%
|
City of Dundee
|
£7,920
|
£1,241
|
£124,076
|
16%
|
Clackmannanshire
|
£8,124
|
£1,298
|
£129,835
|
16%
|
|
|
|
|
|
Ranking - by highest maintenance cost as a proportion of rent gained
|
Location
|
Average Annual Rental
|
Estimated annual maintenance
|
Average house price
|
Maintenance as a proportion of rent %
|
Monmouthshire
|
£7,688
|
£2,722
|
£272,203
|
35%
|
Kensington And Chelsea
|
£36,636
|
£12,555
|
£1,255,549
|
34%
|
Powys
|
£5,540
|
£1,870
|
£187,006
|
34%
|
Suffolk Coastal
|
£8,556
|
£2,873
|
£287,323
|
34%
|
Cotswold
|
£11,472
|
£3,843
|
£384,342
|
34%
|
Charnwood
|
£6,672
|
£2,230
|
£223,000
|
33%
|
Bromsgrove
|
£8,808
|
£2,931
|
£293,123
|
33%
|
South Hams
|
£9,312
|
£3,072
|
£307,217
|
33%
|
Folkestone and Hythe
|
£7,740
|
£2,552
|
£255,250
|
33%
|
South Bucks
|
£18,108
|
£5,943
|
£594,326
|
33%
|
|
|
|
|
|
Tertiary level - London boroughs
|
Location
|
|
Estimated annual maintenance
|
|
Maintenance as a proportion of rent %
|
Kensington And Chelsea
|
£36,636
|
£12,555
|
£1,255,549
|
34%
|
Haringey
|
£18,696
|
£5,482
|
£548,162
|
29%
|
Richmond upon Thames
|
£22,284
|
£6,532
|
£653,201
|
29%
|
Kingston upon Thames
|
£16,680
|
£4,887
|
£488,667
|
29%
|
Hammersmith and Fulham
|
£25,404
|
£7,238
|
£723,807
|
28%
|
Barnet
|
£18,276
|
£5,205
|
£520,535
|
28%
|
Merton
|
£18,360
|
£5,095
|
£509,472
|
28%
|
Camden
|
£30,432
|
£8,434
|
£843,449
|
28%
|
Bromley
|
£15,852
|
£4,377
|
£437,728
|
28%
|
Islington
|
£22,968
|
£6,324
|
£632,427
|
28%
|
Waltham Forest
|
£15,708
|
£4,318
|
£431,770
|
27%
|
Ealing
|
£17,556
|
£4,749
|
£474,948
|
27%
|
Croydon
|
£13,632
|
£3,649
|
£364,882
|
27%
|
Hillingdon
|
£15,240
|
£4,074
|
£407,373
|
27%
|
City of London
|
£29,352
|
£7,845
|
£784,538
|
27%
|
Sutton
|
£14,004
|
£3,736
|
£373,634
|
27%
|
Harrow
|
£16,884
|
£4,500
|
£450,028
|
27%
|
City of Westminster
|
£36,216
|
£9,512
|
£951,242
|
26%
|
Brent
|
£18,420
|
£4,830
|
£483,037
|
26%
|
Redbridge
|
£15,816
|
£4,134
|
£413,432
|
26%
|
Havering
|
£14,028
|
£3,646
|
£364,579
|
26%
|
Wandsworth
|
£22,596
|
£5,851
|
£585,086
|
26%
|
Lewisham
|
£15,888
|
£4,094
|
£409,373
|
26%
|
Bexley
|
£13,272
|
£3,377
|
£337,693
|
25%
|
Hackney
|
£22,008
|
£5,599
|
£559,942
|
25%
|
Southwark
|
£19,848
|
£4,970
|
£497,016
|
25%
|
Enfield
|
£15,720
|
£3,934
|
£393,381
|
25%
|
Lambeth
|
£21,048
|
£5,076
|
£507,586
|
24%
|
Hounslow
|
£17,184
|
£4,010
|
£401,045
|
23%
|
Greenwich
|
£16,848
|
£3,911
|
£391,097
|
23%
|
Newham
|
£17,088
|
£3,632
|
£363,240
|
21%
|
Barking and Dagenham
|
£14,328
|
£3,002
|
£300,242
|
21%
|
Tower Hamlets
|
£21,636
|
£4,354
|
£435,411
|
20%
|
END
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