HMRC Statistics Show Opportunities for Landlords Amidst Challenges

The recently released Property Income statistics by HMRC for 2022/23 reveal quite an interesting shift, the HMRC statistics also show an unexpected inconsistency. Property income reported by partnerships saw a noticeable decline of £3.47 billion compared to the previous year. However, despite this huge dip, the overall property income from unincorporated landlords only decreased by £1.96 billion, meaning that the previous year may just have been an exception in the data.

It is important to understand that the HMRC statistics focus only on a specific part of the UK property sector, specifically the data that is reported through Self Assessment. This means that the incorporated businesses and company landlords have not been included in these figures, since they don't file under the Income Tax Self Assessment (ITSA). In addition to this, the property income of the overseas entities is not included in this data.

Key HMRC Statistics

Number of unincorporated landlords:

Number of FHLs (millions) and FHL Income declared (billions):

Conclusion

The latest HMRC Statistics show that the trends of a single year, might not necessarily reflect how the next few years play out. The importance of paying attention to data, however, remains unchanged. This is because while the data may not help predict the future, it gives landlords an insight on how the following years may play out, as well as give some insight into what they need to focus on.