Being a landlord in Burnley is cheaper than anywhere else in the North West according to a new study by a specialist mortgage lender, which has revealed that those renting out property in the area spend an average of just £1,552 per year on essential costs.
With everything from letting agents' fees, property maintenance, and ground rents to service charges, insurance, and various other niggly admin fees to worry about, one would think that renting out property is an economic hassle, and while that may be true in some areas, Burnley is not one of them according to data revealed by Kent Reliance for Intermediaries.
With the national average cost of renting out property being £3,571 per year, the cost of just over £1,500 to Burnley landlords stands out as particularly favourable. Across the North West as a whole, the average cost is is £2,475 per year before tax, making it the third-cheapest region behind the North East (£1,848) and Wales (£2,129).
Landlords currently contribute £16.1bn to the British economy, and with average costs of £6,455 per property in London (the highest in the UK) it's easy to see how, with the South East the second-most expensive region at an average of £3,656. However, 36% of landlords have said they are considering cutting expenditure due to tax rises and higher running costs.
"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," said Adrian Moloney, Sales Director of OneSavings Bank, bemoaning 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," Adrian added, saying that rising costs deter new landlords from investing. "Property investors will seek to protect their business’ margins, whether cutting their spending on elements like property maintenance and improvement, or raising rents."