Landlords across the UK are facing a sharp rise in running costs, with maintenance and repairs now consuming a growing share of rental income. Recent research from Pegasus Insight shows that non-HMO landlords are allocating around 25% of their gross rental income to portfolio running expenses, while HMO operators report figures closer to 45%.
Maintenance and repairs alone now account for between 31% and 39% of overall expenditure, marking a significant increase compared to previous years. Average annual costs have risen to £19,604 for standard buy-to-let landlords and £35,720 for those managing HMOs.
While rental yields may be at multi-year highs, the reality for many landlords is that cash flow is tighter than headline returns suggest.
Rising costs don’t always mean better outcomes
Pegasus Insight founder Mark Long highlights that although landlords are investing more than ever to keep properties safe, compliant and habitable, maintenance remains a key pressure point.
Rising labour costs, supply chain disruption and higher tenant expectations all make delivering timely repairs more challenging. And higher spend does not automatically translate into better property condition or an improved renter experience.
In fact, when repairs are delayed, costs often escalate.
The real cost of delayed maintenance
Many of the most expensive repairs landlords face begin as minor, preventable issues. These are particularly likely to be missed when landlords:
- Live far away from their rental property
- Are based overseas
- Face language or communication barriers
- Or simply don’t have time for regular inspections
A small leak, ventilation issue or minor wear and tear can quickly develop into structural damage, mould, or safety concerns if not addressed early. By the time the problem is identified, repair costs are often significantly higher.
This is one of the key reasons why, despite higher overall spending, landlords continue to feel pressure on margins.
Why regular property inspections are essential
At Elliot Leigh Guaranteed Rents, regular professional property inspections are fundamental to how we protect landlords’ investments.
Our inspections allow us to:
- Identify maintenance issues early
- Prevent avoidable damage
- Reduce emergency and reactive repairs
- Maintain compliance and safety standards
- Ensure tenants report issues promptly
This proactive approach helps keep long-term maintenance costs under control while preserving the condition and value of the property.
Additional pressures on landlord finances
The research also highlights how costs are rising across every area of property ownership. The average rental portfolio generates around £79,000 per year before deductions, yet for non-HMO landlords nearly £20,000 of that is absorbed by everyday running costs.
For HMO landlords, costs are even higher. Utilities account for 16% of total expenditure, compared with just 4% for non-HMO landlords, largely due to bills being included.
On top of this, landlords are dealing with:
- Increasing compliance requirements
- Higher professional fees
- Rising insurance premiums
- Ongoing servicing contracts
- Older housing stock requiring constant attention
All of which leaves very little flexibility when major repairs arise unexpectedly.
Removing barriers and protecting income
Elliot Leigh Guaranteed Rents removes many of the challenges landlords face, particularly those who are not local or who struggle to manage maintenance efficiently.
We act as the single point of contact for inspections, maintenance and repairs, ensuring issues are identified early and resolved quickly. Most importantly, landlords receive a fixed, guaranteed rental income, regardless of voids, delayed repairs or rising costs.
In a market where expenses continue to rise, the solution isn’t simply spending more – it’s preventing problems before they escalate.
With proactive inspections, structured maintenance and guaranteed rent, Elliot Leigh helps landlords protect their margins, their properties and their peace of mind.
