Published 15 September 2026. Prices from letting agents' fee schedules, insurer quotes and trade price lists, September 2026. Tax rules from HMRC and GOV.UK; tenancy rules from the Renters' Rights Act 2025 and the Tenant Fees Act 2019. Not tax or legal advice.

What a Rental Property Costs to Run in 2026: The Full List

The cost of running a rental property in England is 30 to 35 percent of the rent before the mortgage and tax with an agent, about 20 percent self-managed, and 40 percent or more for a leasehold flat. On a £1,200-a-month house that is about £4,400 a year before mortgage interest, which since 6 April 2020 only earns a 20 percent tax credit. Here is every landlord cost per year at September 2026 prices, three properties worked through to cash flow after tax, and what you can deduct.

Landlord costs per year: the full list

Every recurring cost with its 2026 range; percentages are of gross rent. The rental yield calculator uses the same lines.

Agents' fee schedules, insurer quotes and trade price lists, September 2026. Licence fees as reported in councils' published schedules; see the HMO licence cost guide.

Letting agent fees

Let-only (finding and setting up a tenant) costs 50 to 100 percent of a month's rent: £450 to £900 on a £900 let, a full month in much of London. Full management is 10 to 15 percent of rent collected, 12 percent nationally and 15 in London; check whether VAT is included, as 10 percent plus VAT is 12.

Watch for an £80 to £150 inventory fee on top of let-only and a 10 to 20 percent contractor mark-up, which is why an agent-arranged EICR or gas safety check costs more than one you book. None of it can be passed to the tenant: Schedule 1 of the Tenant Fees Act 2019 lists the only payments a tenant can be asked for, and referencing and inventories are not on it.

Maintenance, voids, insurance and certificates

Maintenance: the 10 percent rule. Budget 10 percent of rent, £1,080 a year on £900 and £2,160 on £1,800; most years cost less and the boiler year far more. Landlord boiler cover at £60 to £180 a year smooths the biggest risk; the boiler cover comparer shows when it pays.

Voids. Two weeks a year is the usual model: £415 of lost rent on £900, £554 on £1,200 and £831 on £1,800, plus council tax for the empty weeks.

Insurance. £150 to £400 a year for a house, £80 to £150 for a flat the freeholder insures; loss of rent and legal expenses add £70 to £130. See the landlord insurance guide.

Certificates. A gas check yearly at £60 to £130, an EICR every five years at £120 to £260, an EPC every ten at £60 to £120 and a legionella risk assessment when tenants change average £150 to £250 a year. The certificate cost calculator prices them for your region and the compliance calendar tracks the dates.

Mortgage, service charges, licences and software

Mortgage interest is the largest cost for most landlords and the only one that is not an allowable expense: £5,040 a year on a 75 percent interest-only loan against a £140,000 terrace at 4.8 percent, £7,920 on a £220,000 semi.

Service charge and ground rent on leasehold flats run £1,000 to £4,000 a year, with major works on top.

Licence fees. Five or more people from more than one household sharing facilities means a mandatory HMO licence, valid for a maximum of five years at a fee set by the council, with an unlimited fine for letting without one (GOV.UK). Designated areas add selective licensing for other rentals. As reported in councils' published fee schedules, a five-year licence is typically £500 to £1,500, so £100 to £300 a year; see the HMO licence cost guide.

Accountancy for a single-property return is £150 to £400 a year.

Software and Making Tax Digital. MTD means digital records and quarterly updates once qualifying income (gross rent plus any sole trade turnover, before expenses) is above £50,000 from 6 April 2026, £30,000 from 6 April 2027 and £20,000 from 6 April 2028, each tested on the tax year two years earlier (HMRC). One property at £900 or £1,200 a month stays below every threshold; the £1,800 flat is caught from April 2028. The MTD checker gives your start date and the Making Tax Digital guide explains the cycle.

The tax bill under Section 24

Since 6 April 2020 individual landlords cannot deduct mortgage interest or other finance costs. Tax is worked out on the profit before interest, then reduced by 20 percent of the interest (HMRC guidance), capped at 20 percent of the property profit or of total income above the personal allowance, with any unused part carried forward. Because the profit before interest is added to salary, a landlord on £45,000 can be pushed over the £50,270 threshold by a property that barely breaks even.

For 2026 to 2027 the personal allowance is £12,570, the 20 percent basic rate runs to £50,270 and the 40 percent higher rate to £125,140 (GOV.UK). Take £12,000 of rent, £4,000 of costs and £5,000 of interest: £3,000 of real profit.

2026 to 2027 rates, whole profit in one band; the higher-rate landlord pays £1,000 more than under the old rules.

One-off costs

EPC figures from the EPC C by 2030 planner; other prices from agents' and inventory clerks' lists, September 2026.

The government's response of 21 January 2026 set a single EPC C compliance date of 1 October 2030 for private tenancies in England and Wales, a £10,000 cap per property, a ten-year exemption once the cap is spent, and treats an EER C on a certificate issued before 1 October 2029 as compliant; the EPC C 2030 cost guide prices the work. Deposits are capped at five weeks' rent where annual rent is under £50,000 (six weeks at or above) and must be protected within 30 days, or a court can order up to three times the deposit paid to the tenant (GOV.UK); the deposit calculator gives your cap. Charging a banned fee carries a penalty of up to £5,000, or £30,000 where the breach is an offence.

Three worked examples

All three assume two weeks empty, 10 percent maintenance, an interest-only mortgage at 4.8 percent, management at 12 percent (15 in London), an accountant plus £60 of software, and 2026 to 2027 rates. The houses carry 75 percent loans, the flat 60 percent.

A £900-a-month terrace in the North, value £140,000

Gross yield 7.7 percent, net 5.2 percent; costs and voids 33 percent of rent. Licence assumes a selective licensing street.

A £1,200-a-month semi in the Midlands, value £220,000

Gross yield 6.5 percent, net 4.5 percent; costs and voids 31 percent of rent; no licence needed. Cash before tax is £2,074.

An £1,800-a-month flat in London, value £450,000

Gross yield 4.8 percent, net 2.8 percent; costs and voids 43 percent of rent. The credit is capped at 20 percent of the profit, so £556 of interest carries forward.

The same property works for a basic-rate taxpayer and is marginal or loss-making for a higher-rate one, who here pays £2,481 of tax on a flat losing £556 in cash. Judge a purchase on the after-tax line, not the gross yield.

What is deductible

HMRC's list of allowable expenses is short (GOV.UK); the line is repair against improvement, revenue against capital.

GOV.UK's allowable expenses list and HMRC PIM3210, checked September 2026.

A £1,000 property allowance can replace expenses (GOV.UK), useful only if costs are under £1,000; with a mortgage and an agent they never are.

Voids and rent rises under the Renters' Rights Act

Since 1 May 2026 every private tenancy in England is an assured periodic tenancy: no fixed terms, a tenant can leave on two months' notice, and section 21 no-fault evictions are gone, so possession goes through the court on a listed ground. Three costs follow.

• Voids are less predictable. A tenant who once waited for the end of a 12-month term can leave in month four, and each change costs about a month's rent. The Renters' Rights Act cost guide puts the extra voids at £550 to £1,100 a year on a £1,200 property.
• Rent rises once a year, by notice. A section 13 notice with at least two months' notice, once in any 12 months, which the tenant can refer to a tribunal that can set a lower figure and defer the start by up to two months.
• Rent in advance is capped at one month and the deposit at five weeks, so the buffer against a bad tenant is smaller.

The private rented sector database costs £65 per property a year from 15 December 2026, and the landlord ombudsman that follows it has a fee still to be set. Civil penalties run to £7,000 for a first breach and £40,000 for a serious or repeat one. The Renters' Rights checker lists what applies to you; the database and ombudsman guide tracks the fees.

Frequently asked questions

How much does it cost to run a rental property in the UK?

30 to 35 percent of the rent before the mortgage and tax for an agent-managed house in England in 2026, about 20 percent self-managed and 40 percent or more for a leasehold flat: about £4,400 a year on a £1,200-a-month semi.

What are typical landlord costs per year?

For a £1,200-a-month house with an agent: management £1,662, maintenance £1,440, two weeks of voids £554, insurance £260, certificates £180, accountant £250 and software £60, so £4,406 a year before mortgage interest and tax.

What percentage of rent should I set aside for maintenance?

10 percent, so £1,440 a year on £1,200 a month, rising to 12 to 15 percent for a pre-1930 house.

Can landlords still deduct mortgage interest?

Not since 6 April 2020. Landlords pay tax on the profit before interest and get a 20 percent tax reduction on the interest instead. A basic-rate taxpayer is no worse off; a higher-rate taxpayer with £5,000 of interest pays £1,000 more.

Can I charge the tenant for referencing or the inventory?

No. Under the Tenant Fees Act 2019 a tenant can only be asked for rent, a deposit capped at five weeks' rent (six where annual rent is £50,000 or more), a one-week holding deposit and limited default charges. Referencing at £20 to £40 and an inventory at £80 to £150 are your costs; a breach carries a penalty of up to £5,000.

When does Making Tax Digital apply to landlords?

From 6 April 2026 if qualifying income was over £50,000 in 2024 to 2025, from 6 April 2027 if over £30,000 in 2025 to 2026, and from 6 April 2028 if over £20,000 in 2026 to 2027. Qualifying income is gross rent plus sole trade turnover, so one property at £1,200 a month (£14,400 a year) is not yet caught.

Sources

HMRC on finance cost relief; GOV.UK income tax rates; GOV.UK on paying tax on rent; GOV.UK property allowance; HMRC PIM3210; HMRC on MTD eligibility; Tenant Fees Act 2019, Schedule 1 and section 8; GOV.UK deposit protection for landlords; GOV.UK HMO licence; GOV.UK guide to the Renters' Rights Act; the government's EPC response of 21 January 2026; agent, inventory and insurer price lists, September 2026. See the methodology.