Maintenance costs now account for over a fifth of the average rental income of a property, having surged since the start of the year alone, analysis from property maintenance solution provider Help me Fix has revealed.
The current annual cost of maintaining a property now sits at an average of £2,864 across the UK.
This is a 4.7% increase since the start of the year alone, with an increase in the cost of materials, as well as the cost of services, such as qualified trades people, contributing to the rise.
Ettan Bazil, chief executive and founder of Help me Fix, said: “With inflation currently at a forty year high, the cost of maintaining a rental property has climbed by quite some margin since the start of the year alone. However, for many landlords and professional rental management firms, the escalating cost of materials has long been an issue.
“At the same time, the pandemic restrictions imposed during the numerous lockdowns have really shone a light on tenant welfare when it comes to the quality of accommodation. With the likes of the build to rent sector also driving standards upwards in this respect, it’s no longer acceptable to subject a tenant to subpar living conditions.
“So while maintenance costs are now swallowing a considerable chunk of a rental property’s earning potential, it’s a necessity that simply can’t be ignored.”
London has the highest current annual maintenance cost at £5,379, but it’s the East Midlands where this cost has increased the most since January, climbing by 6%.
This cost is highest in the East of England, where maintenance costs now account for 27.3% of the total average annual rental income, with the South East not far behind at 27%.
The proportion of rental income required to cover maintenance costs also sits above the national average in the East Midlands (26.2%), the South West (25.3%), the West Midlands (25.3%), London (24%), Wales (23.1%) and the North East (22.3%).