Tenants - want to know where your rent goes to and why it is rising? Our analysis demonstrates that so called "greedy landlords" are making no profit from your rent and in fact are often losing money.

We analysed landlord's expenses on a typical £1,000 rent-per-month apartment and this is what we found:

Landlords do not receive full tax relief on mortgage interest, the largest cost, which in many cases, pushes them into a loss making situation. Far from being "greedy" as often dubbed by the press, media and tenant action groups, it is clear that most landlords are making no profit from renting. Many landlords accept this and bank on appreciation of their property value to give them an eventual return on their investment, however then they are hit with capital gains tax with its massively reduced thresholds. The taxman isn't done yet at that point as there is also potentially inheritance tax. 

The above figures also demonstrate why many landlords are selling up, reducing the supply of rental property. This increases demand which pushes up rental prices.

Notes on above figures.

1. Based on analysis of managed Belfast apartments at average rent of £1,000pcm.

2. Finance based on £100,000 at 5% ipa. Note that the cost of such an apartment could be £150,000 so this does not account for any interest on the capital.

3. Rates and service charges vary; for apartments with lifts this could be significantly more. 

4. Statutory certs/registrations include annual gas CP12, new 5 year EICR, 10 year EPC, new 10 year smoke alarm regs, 3 year landlord reg.

5. Agency fees vary; usually up to 10%pcm + VAT then letting fee of around £600-£700, so the £120 is a low figure.

6. Accountancy fee based on single landlord owning single property and includes new MTD submission fees for 26-27. Additional properties will spread this cost however additional owners such as spouses will increase it. 

7. Income tax based on 40% as most landlords have other income, with 20% relief against finance. 

8. Figures are based on averages and can vary significantly either way. Analysis of figures for houses show a similar figure (service charges are less but repairs and maintenance are greater).