Landlords should save £2,000 a year for additional costs
Across the UK, landlords should be saving an annual budget of £2,344 to cover repairs and maintenance according to property management platform Howsy.
This figure rises to £4,746 in London whilst the North East is home to the lowest repair costs at £1,328.
Calum Brannan, founder and chief executive of Howsy, said: “The buy-to-let sector can be a minefield for the amateur investor and now more than ever, it’s imperative that you do everything you can to maximise the return on your investment.
“While technology now allows a greater level of control and service when managing your investment at a lower cost via online platforms, it isn’t just about the financial side of things.
“Providing a fit for purpose property is not only a legal requirement but essential to ensure a happy tenancy and a reduction in void periods.
“Of course, things can go wrong and having the budget available to fix them is a must.
“In the worst-case scenarios, a cash pot equal to 1% of your property’s value might not be sufficient, but it should cover you for most eventualities and is a good benchmark to start on.
“As with all buy-to-let investments, good preparation, organisation, and education are key, and whether you go it alone or have a great management agent if you stay on top of things, a bricks and mortar investment is still one of the best you can make.”
In Kensington and Chelsea, the annual 1% saving climbs to £12,292, hitting nearly £9,000 in both the City of London and Westminster.
Outside of London, South Bucks and Elmbridge are home to the most expensive buy-to-let maintenance costs at £6,091 and £6,019 respectively.