Landlords inject £3.61bn annually into local economies across the UK, Aldermore research shows

POSTED: 3rd February 2020
IN: Newsroom
  • There are 2.5m landlords1 currently operating in the UK, and new research from Aldermore Bank has found they have spent on average £1,443 using local tradesmen in the last 12 months
  • This means £3.61bn is being injected into local businesses across the UK every year from landlords
  • Four in five (81%) landlords use local tradespeople to maintain their rental properties
  • 90% of landlords say they will continue using or increase the amount they use local services in 2020
  • Trust and supporting their community are the main reasons why they use local

Aldermore’s new buy to let research2, surveying 1,000 UK-based landlords, highlights the important contribution landlords make to their local economy with eight in ten (81%) turning to a local tradesperson when their property requires work or renovation. Landlords spent on average £1,443 in the last 12 months on services such as plumbers, builders, letting agents and other tradespeople, and all hired from the local community for most of their requirements.

Of the total amount paid to local service providers, landlords spent the most on letting agents coming to £879m in the past twelve months, followed by £442m on general handy-workers and £396m on plumbers. Also, landlords spent £375.4m on electricians, £377.3m on builders, and £243.2m on cleaners.

Using local provides peace of mind for landlords

Over a third (39%) say trust is the main reason why they turn to someone local, while one quarter (26%) say, due to not living close to their rental property, having local people do maintenance is reassuring to them. Furthermore, one in three (31%) want to support their local economy by using local tradespeople and one in four (24%) say they tend to be cheaper to alternatives which helps keep their business costs down.

The report found that landlords are happy with the services local tradespeople provide and two thirds (65%) will continue to use them, with a further quarter (25%) intending to use them even more in the future. Only 7% of landlords say they haven’t used local services for their properties, mainly due to being able to do the jobs themselves or having a family member who can service the property.

Damian Thompson, Group Managing Director of Retail Finance at Aldermore, said: “Landlords are an integral part of local communities across the UK, providing investment and fulfilling the demand of the expanding Private Rented Sector. Around every landlord is an ecosystem, in which they pay local tradespeople, like plumbers, builders, decorators, for jobs and those companies in turn train up employees and pay their own local suppliers for services also. The contribution landlords make to local communities extends much wider than merely providing rental accommodation.

“Our findings show supporting local economies also brings benefits to landlords own businesses. Local workers bring a lot of value to landlords with respondents to our survey citing in particular the quality work, cost effectiveness and the understanding of local areas as key benefits.”

Table 1: landlord expenditure on local services the past 12 months

Service

Percentage of landlords that used service in past 12 months

Average amount spent annually on landlords that used service

Total UK wide annual spend for service by landlords

Letting agent/ property management

31%

£1,135.40

£879.9m

Handy-worker

40%

£442.40

£442.4m

Plumbers

51%

£310.70

£396.1m

Electricians

47%

£319.50

£375.4m

Cleaners

19%

£512.10

£243.2m

Builders

26%

£580.50

£377.3m

Roofers

16%

£537.60

£215.0m

Gardeners

12%

£476.50

£143.0m

Carpenters

18%

£481.80

£216.8m

Architects

4%

£764.10

£76.4m

Structural Engineers

4%

£877.20

£87.7m

Interior designers

5%

£1,020.00

£127.5m

Other

3%

£494.90

£37.1m

  

-ENDS-

Notes to editors

1 Based on HM Revenue & Customs (HMRC) data acquired by London estate agent ludlowthompson following a Freedom of Information request.
2 Research conducted by Opinium on behalf of Aldermore in Q4 2019, with a sample of 1,000 UK landlords          

For further information, journalists can contact:

Gareth Hill, Aldermore
Phone:            07721 127514
Email:              Gareth.hill@aldermore.co.uk 
Twitter:           @AldermoreNews

For further information about Aldermore, please review our Notes to Editors page.

 

  • Mortgage
  • Press Release
  • Landlord