The research revealed two thirds of landlords have buy-to-let borrowing on their lettings portfolio, and that those with a BTL mortgage spend over a quarter (28 per cent) of their rental income on meeting repayments.
Landlords surveyed also said they spend on average 11 per cent on maintenance, and 6 per cent on each of agents’ fees, furnishing and insurance.
Carolyn Uphill, NLA Chairman, said:
“These figures show how significant a business cost mortgage repayments present for the average landlord and demonstrate why the Chancellor’s Budget will be such a blow for many.
“With the average rental yield at its lowest level for five years - at 5.7 per cent - landlords need to plan their finances carefully to ensure they do not end up running at a loss.
“Landlords can get help and support from us, the largest landlord association; for instance we offer services such as NLA Rent Manager, an online software solution, which can help landlords better manage their finances by organising and tracking important aspects of a rental business.”
