London-based landlords account for 28% of declared rental income: what HMRC’s new data reveals
HMRC’s latest property rental income statistics, published on 28 August 2026, show that London-based unincorporated landlords made up 17% of those declaring UK property income in 2024/25 but accounted for 28% of the income. London and the South East together represented 33% of landlords and 44% of declared income. The figures are based on the landlord’s registered address, not the location of the property. Total declared rental income was £58.99 billion, virtually unchanged from £59 billion in 2023/24.
What the numbers actually say
| Measure | 2024/25 figure |
|---|---|
| Unincorporated landlords declaring property income | 2.88 million |
| Total declared rental income | £58.99 billion |
| Average income per landlord | £20,500 |
| Landlords declaring £10,000 or less | 1.3 million, or 45% |
| London share of landlords / income | 17% / 28% |
| London and South East combined share of income | 44% |
| UK furnished holiday let income | £2.46 billion, or 4% |
Average property income per landlord rose by £3,900, or 24%, between 2020/21 and 2024/25. Over the same period, total allowable expenses rose 56%, from £22.33 billion to £34.75 billion. Average declared expenses reached £13,700 in 2024/25, 12% higher than the previous year. London and the South East accounted for 52% of all allowable expenses.
You can read the full release in HMRC’s property rental income statistics.
The caveat that changes the picture
HMRC allocates the geographical data according to the postcode on the landlord’s Self Assessment record. A landlord living in London with properties elsewhere is therefore counted as London-based. The statistics cannot identify where the rented property itself is located.
The data also covers Income Tax Self Assessment returns only. Incorporated property businesses are excluded, as are people whose property income does not need to be reported through Self Assessment. If you hold property through a company, our checklist ahead of profit and loss filing at Companies House is more relevant.
What it means if you’re a landlord
HMRC says 87.7% of unincorporated landlords declared some form of allowable expense in 2024/25, meaning 12.3% did not. The statistics do not explain why an individual landlord claimed no expenses, so the figure should not be treated as evidence that deductions were missed.
Need Expert Accounting Advice?
If you are unsure about tax, bookkeeping, payroll, property accounts or business finances, speak to the team at FHP Accounting for clear, practical guidance.
What is clear is that expenses have risen considerably faster than gross rental income over the five-year period. Accurate record keeping therefore matters. Making Tax Digital for Income Tax is now mandatory for qualifying sole traders and landlords with qualifying income over £50,000, and HMRC has started signing up people who should be using it but have not registered. We covered the agent side in how HMRC’s agent access flexibility helps landlords.
MTD requires compatible software to create and store digital records from the start of the tax year and to send quarterly updates. HMRC’s automatic sign-up does not remove those obligations.
If you hold London property through a block or a company
Property held through companies, RTMs or service-charge structures can bring separate accounting responsibilities. Directors of resident-owned companies should review what RTM annual accounts need to include, while anyone handling service-charge funds should understand the accounting and trust considerations covered in our guide to service charge accounting.
Commercial property managers should also note the updated RICS service charge code. The second edition of the RICS professional standard became effective on 31 December 2025, with RICS expecting its provisions to be fully adopted for service charges with 31 December 2026 year ends and beyond. Our guidance on structuring commercial property management accounts covers the practical accounting side.
If you are VAT registered in relation to commercial property activity, check your HMRC VAT account separately.
Companies and certain other entities holding UK residential property worth more than £500,000 can also fall within Annual Tax on Enveloped Dwellings, subject to available reliefs and exemptions. Our ATED return service can help with that filing position.
Talk to us about your portfolio
Sector averages provide useful context, but they do not show whether an individual portfolio is profitable or tax-efficient. FHP Accounting supports property investors through our landlord accountant service, property tax advice and personal tax returns, and we act for clients as accountants in London and across the Midlands.
Get in touch and we’ll review where your rental income, expenses and reporting obligations sit.
I lead FHP Accounting, an accountancy practice specialising in Commercial and Residential Property Accounting. Our goal is to make the administration of running property portfolios easier for landlords, managers, and investors — allowing you to focus on what you do best, while we take care of everything behind the scenes.
Need Expert Accounting Advice?
If you are unsure about tax, bookkeeping, payroll, property accounts or business finances, speak to the team at FHP Accounting for clear, practical guidance.
