Average property rental income reached a record £20,500 per landlord in the 2024-25 tax year, up 24% from 2020-21, as the total number of unincorporated landlords reporting rental earnings rose to 2.88 million, according to HMRC statistics.

Unincorporated landlords declared £58.99bn in property income during the year, relatively unchanged from £59bn in 2023-24 but up 26% (£12.3bn) over the past five years.

The slight increase was driven by both higher average rental income and a growing number of landlords reporting earnings, with landlord numbers rising from 2.81 million in 2020-21.

Individuals accounted for 99% of all landlords and reported £49.81bn of the total property income declared in 2024-25.

The vast majority of landlords, 87.7%, claimed at least one allowable expense. The most commonly claimed costs were rent, rates and insurance and repairs and maintenance, while residential finance costs remained the largest expense category by value at £12.82bn, representing 37% of all expenses claimed.

Property income remained heavily concentrated in London, where 17% of landlords were based but accounted for 28% of total income. London and the South East together represented 33% of landlords and 44% of property income.

The figures cover only property income declared through HMRC’s Self Assessment system and exclude incorporated businesses and income below the threshold for inclusion.

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