UK landlord expenses rise 56% in five years, HMRC data shows

Allowable property expenses declared by unincorporated UK landlords rose much faster than rental income over the five years to 2024/25, according to new HM Revenue & Customs statistics. The figures offer a useful national benchmark for landlords reviewing how their own running costs have changed, although they do not show the profitability of an individual property or portfolio.

What the HMRC figures show

HMRC’s official statistics cover individuals and partnerships reporting UK property income through Income Tax Self Assessment. They exclude incorporated property businesses and people whose property income does not need to be reported through Self Assessment.

In 2024/25, 2.88 million unincorporated landlords declared £58.99 billion of property income. A total of 2.54 million, or 87.7%, declared at least one type of allowable expense, with expenses reaching £34.75 billion.

Across the five years from 2020/21, declared rental income increased by 26%, while declared expenses increased by 56%. On a simple comparison of the two totals, expenses were equivalent to about 59% of declared income in 2024/25, up from about 48% five years earlier. That ratio is a sector-level indicator, not a profit margin: different landlords make different claims, and HMRC notes that expenses can be declared even where no property income is declared in the same data.

The most recent annual movement was also notable. Total property income was broadly unchanged from 2023/24 at £58.99 billion, while total expenses rose by 11%. Average declared income per landlord reached £20,500, compared with average allowable expenses of £13,700.

Finance, repairs and professional fees dominate

Residential finance costs were the largest expense category by value, at £12.82 billion. Around 1.15 million landlords declared them, and they represented 37% of all expenses recorded in the release.

Repairs and maintenance were more widely claimed. About 1.92 million landlords, 66.2% of the unincorporated landlord population in the statistics, declared £6.41 billion in this category. Rent, rates and insurance totalled £3.81 billion, while legal, management and professional fees reached £4.16 billion.

These categories should not be read as a checklist of what is deductible in every case. Tax treatment depends on the nature of the cost and the landlord’s circumstances, and capital improvements are generally treated differently from day-to-day repairs. Landlords should use current HMRC guidance or seek suitably qualified tax advice where the treatment is unclear.

Why the trend matters for landlords

The release does not separate the effect of interest rates, insurance, contractor prices, management charges or compliance work. Nor can it identify where each rental property is located: HMRC’s regional analysis uses the landlord’s registered address. It therefore cannot tell an individual landlord what their costs ought to be.

It does, however, show that cost control has become a larger operational issue across the unincorporated sector. With income levelling off in the latest year while expenses increased, relying on headline rent growth alone can give an incomplete picture of a property’s finances.

Practical checks to make now

Landlords can use the publication as a prompt for an evidence-based review rather than as a forecast. Useful checks include:

comparing the latest full-year costs with the previous year by category, rather than looking only at total spending;
checking that invoices, statements and records clearly distinguish repairs, finance costs, professional fees and capital work;
reviewing recurring insurance, management and service contracts ahead of renewal dates;
building realistic maintenance allowances from the property’s actual condition and repair history; and
making sure tax records and software are ready for any reporting obligations that apply to the business.

HMRC says the statistics may be revised as further tax returns are received and processed. The next release is expected in summer 2027, so landlords comparing their own records should retain the context and date of this edition.