Landlord Costs UK: What It Really Costs to Be a Landlord (2026)

Every cost of letting a property in England, with typical 2026 prices and a worked example, so you know what to set aside before the mortgage and tax.

Updated 12 October 2026

The short version

Before the mortgage and tax, a typical self-managed let costs around 18% of the rent a year in our worked example below. With a fully managed agent it's around 32%.
The fixed costs are small: a gas safety record, an electrical report every five years, an EPC every ten, insurance and an accountant.
The big variables are repairs, empty weeks and agent fees. Those decide whether a let makes money.
Most running costs can be set against the rent for tax. Mortgage interest only gets a basic-rate tax credit, because of Section 24: 20% now, 22% from April 2027.

Worked example: a £1,500-a-month flat

A two-bed flat outside London let for £1,500 a month, or £18,000 a year. Prices are mid-range figures from the sources at the end of this guide.

Cost	Each year	How we got it
Gas safety record	£75	Every 12 months. Typically £60 to £90, or £85 to £120 in London and the South East
Electrical safety report (EICR)	£36	About £180 for a two-bed flat, every 5 years
EPC	£9	About £90, lasts 10 years
Landlord insurance	£285	Median quote in 2026, with no optional extras
Accountant	£360	About £300 plus VAT for a return with one rental
Repairs and maintenance	£1,800	10% of the rent: our assumption for a well-kept flat
Empty weeks	£692	2 weeks a year without rent
Landlord database	£65	Per property, per year, once registration opens in 2027
Self-managed total	£3,322	18.5% of the rent, about £277 a month
Fully managed agent	£2,492	12% plus VAT on the rent received
Total with an agent	£5,814	32.3% of the rent, about £485 a month

That's before mortgage payments and tax. A flat may also have ground rent and a service charge, which can run to several thousand pounds a year. Put your own figures into the landlord budget planner to see your monthly set-aside and break-even rent.

Safety certificates and checks

Gas safety record: every 12 months, by a Gas Safe registered engineer. Typically £60 to £90 for a boiler and one appliance, or £85 to £120 in London and the South East.
Electrical safety report (EICR): at least every 5 years. Around £120 to £200 for a flat, and £180 to £280 for a three-bed house, more in London.
EPC: usually £65 to £120, valid for 10 years. The home must be rated E or above to let. See how to get to EPC C for what upgrades cost.
Smoke and carbon monoxide alarms: a small cost, but they must be working on the first day of every tenancy.

Our landlord compliance checklist lists every check and when it's due.

Letting and management

Fully managed: usually 10% to 15% of the rent plus VAT at independent agents, and 15% to 17% plus VAT at large chains. With VAT, 12% becomes 14.4%.
Tenant find only: often 8% to 12% of the first year's rent plus VAT, or a fixed fee of roughly £400 to £1,500.
Inventory and check-in: from about £145 for a one-bed to £205 for a four-bed, with a check-out report from £85. You can do it yourself: see how to do a check-in inventory report.
Deposit protection: custodial schemes are free; insured schemes charge a fee.

Since the Tenant Fees Act 2019, you can't pass letting fees, referencing or inventory costs on to tenants in England.

Repairs, maintenance and empty weeks

This is the hardest cost to predict. One 2025 estimate put a typical property at £3,832 a year, about 24% of the average rent, once big jobs like a new boiler and redecorating are spread over the years. A newer, well-kept home usually needs less in most years, but setting money aside every month means a boiler doesn't arrive as a shock.

Empty weeks between tenants cost a full week's rent each, plus bills and council tax while the property is empty. Two weeks a year is about 4% of the rent.

Licences, registration and insurance

Council licence: needed in selective licensing areas and for most HMOs. In London, selective licences cost between £640 and £1,025 per property, usually for five years. Check your borough with our London licensing checker.
Landlord database: £65 per property, per year, once your region opens. See how to register.
Landlord insurance: a median of about £285 a year for cover with no extras, plus £74 to £248 if you add contents cover.

Mortgage, tax and accounts

Mortgage interest is usually the biggest cost by far. See what a rate change does with our interest rate guide.
Income tax: from April 2027 rental profit has its own rates of 22%, 42% and 47%, and mortgage interest gets a 22% credit instead of being deducted. The Section 24 calculator shows what's left.
Making Tax Digital: if your rent and self-employed income are over £50,000, you need compatible software from April 2026, and over £30,000 from April 2027. Use the MTD checker.
Accountant: roughly £275 to £325 plus VAT for a return with one rental, more with several properties or in central London.

Which costs reduce your tax?

Running costs such as repairs, insurance, agent fees, certificates, accountancy and the costs of empty periods can usually be set against the rent. Improvements, such as an extension, can't be claimed against rent, but can reduce capital gains tax when you sell. Search any cost in Can I claim this?

Questions landlords ask

How much does it cost to be a landlord each year?

Before the mortgage and tax, around 18% of the rent for a self-managed two-bed flat in our worked example, or about 32% with a fully managed agent. Repairs, empty weeks and agent fees make the biggest difference.

How much does a landlord gas safety certificate cost?

Typically £60 to £90 for a boiler and one gas appliance, or £85 to £120 in London and the South East. You need one every 12 months.

How much should a landlord set aside for repairs?

Estimates vary widely. One 2025 estimate put a typical property at £3,832 a year once large jobs are spread over the years. A newer, well-kept flat usually needs less; we use 10% of the rent in our example.

Are landlord costs tax deductible?

Most running costs are, including repairs, insurance, agent fees, certificates and accountancy. Improvements aren't deductible against rent, and mortgage interest only gets a basic-rate tax credit: 20% now, 22% from April 2027.

What it really costs to be a landlord