Landlords are a huge economic boon to local economies, injecting over £3billion into their communities, according to new research.
In the past 12 months, landlords spent an average of £1,443 each on services such as plumbers, builders, letting agents and other tradespeople from the local community, the study from Aldermore Bank found.
The survey of 1,000 landlords found their biggest financial outlay was on letting agent fees, collectively spending £879m over 12 months. Other expenses included £442m on general handy-workers, £396m on plumbers, £375.4m on electricians, £377.3m on builders, and £243.2m on cleaners.
Their financial contribution to local economies made landlords “an integral part of local communities.”
Of the landlords asked, over a third (39%) gave trust as the main reason they would choose someone local with a quarter (26%) saying as they did not live close to their rental property, having local people do maintenance gave them peace of mind.
Despite their contribution to the community, boosting local economies wasn’t the driving force behind these decisions; only one in three (31%) landlords said they actively chose to support their local economy by using tradespeople from the community while one in four (24%) said they would look further a field if it meant finding cheaper alternatives.
“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, said Damian Thompson, Aldermore’s group managing director of retail finance.
“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.”
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