Inspired by Savills’ findings on landlord capital gains last month, we decided to look at just what sort of money landlords in the UK are making – and how much we the taxpayer are helping them.
As reported in the Guardian this morning, UK landlords make £77.7bn each year in rent and capital gains. This is more than Morocco’s GDP of £68.6bn (for a country of 33m people), making the industry the 61st largest economy in the world (UN 2013).
They are also subsidised to the tune of £26.7bn in tax breaks and housing benefit. That is higher than the £25bn of cuts that George Osborne claims are needed after the election. It is also more than our spending on the overseas aid budget of £10.3bn, job seekers allowance of £4.34bn, the Department for Culture, Media and Sport’s entire budget of £6.14bn, and the £1.13bn Affordable Homes Programme put together.
The cost of landlord subsidies to Britons is £1011 per household. That is the cost of a week’s holiday for four in Majorca, a 55″ HD TV, or a Boardman Road Team Carbon bike.
It will come as no surprise to many that the latest research released from Savills shows that under 35s are paying the most per household on housing.