Latest Rental Income Insights
Every quarter The Mortgage Works survey landlords across the country, requesting information about their rental income and publish the results.
The most recent results, relating to Quarter Three of 2021, highlight a significant shift in income.
- The annual rental income generated per property has increased to £8,142 (up £293 from Q2 ’21), this represents a 3% increase from the previous quarter.
- More landlords now report they have increased rents in the last 12 months (+7%pts to 33%), with the proportion who intend to increase rents in the next 6 month also up vs. Q2 (+4%pts to 33%).
- The highest average gross rental income is currently achieved by landlords with rental property in Central London (£94,000), followed by those who operate in Outer London (£80,000).
- The other regions achieving above average gross rental incomes in Q3 are the North West, South West, Yorkshire & the Humber, East Midlands, East of England and the South East.
- At £37,000, Wales has the lowest regional gross rental income this quarter. However, the North East (£48,000) and West Midlands (£50,000) also sit someway below the national average.
- Landlords with BTL mortgage borrowing continue to generate a significantly higher gross rental income than those who own their portfolio outright (£68k vs. £37k).
- The gap in average rental income achieved by those with BTL and those without has increased from £17k in Q2 ’21 to £31k this quarter.
If you’re considering a Buy To Let mortgage, would like to increase the size of your portfolio, or need advice about getting into rental property, contact your Mortgage Expert today.