Shock fall in Landlord income according to HMRC According to HMRC, landlords’ income has dropped by 4% for traditional private sector landlords but numbers of those renting via Airbnb has increased. While 4% may not seem like a significant figure on the surface, for many landlords that is the difference between making a profit or having to subsidise their investment every month. Despite rising rents an HMRC report on lettings activity shows that income from private landlords fell by 4% between 2021 to 2023. This goes some way to explaining the steep increase in landlords selling their rental homes. According to Rightmove 1/5 of current London homes for sale on the portal were previously rented. Higher interest rates, increased costs, removal of mortgage interest relief coupled with forthcoming tax increases in the next budget and looming legislation are all individual factors. However, add them all together and the mystery of why landlords are leaving the Private Rented Sector at the current rate is clearly solved. Unfortunately, as always there are ‘knock on’ effects of well intentioned Government tinkering with the Private Rented Sector which ultimately impact on tenants. Increased rent and a sharp fall in available stock means it is ever more difficult for tenants to secure and afford their rental homes.