Brighton has been revealed as the best city for landlords to profit, according to CIA Landlord.
The average property price was recorded at £410,541, resulting in the average mortgage amount being £294,221.
The average monthly rental price for a tenant was noted at £2,044, with £1,411 owed per month in mortgage repayments.
CIA Landlord outlined that landlords in Brighton make £571.85 profit per month.
In contrast, St Albans was noted as the least profitable based on CIA Landlord analysis.
Breaking down the data, the average property price is noted at £557,872, which results in the average mortgage amount being £399,808.
CIA Landlord then looks to the average rental price for a tenant, which is £1,243 per month, the average monthly mortgage repayments of £1,917, and an average of £61.56 in monthly costs for landlords.
This then equates to a £735.36 loss, based on the style of analysis from CIA Landlord.
On average UK landlords need to spend £1,134 per month in 2021, which includes average monthly mortgage costs, maintenance, and average letting agency fees.
Furthermore, just six out of 33 London boroughs are profitable for landlords in 2021, down 48% from last year’s profitability for London when using CIA Landlord’s algorithm.
Kensington and Chelsea was seen as the least profitable London borough for landlords in 2021, making a £2,271.19 per month loss.
Richard Wayman, finance director at CIA Landlord, said: “COVID-19 has undoubtedly shifted the way new landlords will be looking to invest in 2021, and our ranking makes it clear that considering location alongside price has never been more crucial.
“When looking into the true costs of being a landlord this year, it can certainly come as a surprise to some at just how expensive certain requirements are as well as the fluctuation in these costs.
“Before taking your first step into the property ladder, we recommend you consider all of the costs involved in becoming a landlord and ensure you invest in an area that is stable and will be profitable for you in the long term.”