Landlords within England are experiencing a thriving rental sector, as earnings from rental payments top £32 billion per year.
Landlords Receiving Record Income from Rentals
Direct Line for Business conducted a study that found landlords in London receive the highest proportion of private rental income in England, at a massive £14 billion a year. This is more than the North East, East Midlands, West Midlands, Yorkshire, and East Anglia combined. Altogether, 44% of the whole country’s rent is paid in London.1
Outside of London, the highest amount of rent paid in any city is in Leeds, with yearly private rent reaching £565m. Next is Birmingham at £521m, followed by Manchester at £401m.1
The research also found that London and the Home Counties lead rental earnings, with central London seeing the highest average rents, at £1,633 a month or £19,596 per year. The highest rents outside of London are found in Elmbridge, Surrey, where they stand at £1,579 per month or £18,948 a year.1
Despite these huge figures, landlords outside of these parts can also see a strong rental income. Areas outside the London commuter belt can also demand high rents, with Bath, North Somerset, and the Cotswolds commanding annual rental incomes of over £11,0000.1
In terms of proportion of private renters, Bournemouth leads the way outside London, with 30% of households in rental accommodation. The Isles of Scilly have 29.7%, and Brighton and Hove have 29%. Inside Greater London, the proportion of private rentals is 30.7%.1