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Landlord Costs in Peterborough: Complete Guide

Name: Landlord Costs in Peterborough: Complete Guide
Brand: Progressive Lets
Rating: 4.9 (499 reviews)

By Wayne Beecham | Created on 7th April 2026

The East Midlands/East of England border is something of a lettings hotspot, with a healthy demand for rental properties in the Peterborough, Northampton and Wellingborough areas. In fact, rental values in our part of the country often outperform the national average. This may prompt you to consider property investment. If you’re not sure of the costs of being a landlord, read on.

It’s good to know the full scope of outgoings before you take the plunge. So, if you’re asking yourself, ‘what bills will I need to pay when renting out my flat?’ and ‘what tax might I pay’, you’ll benefit from this breakdown of costs when being a landlord.

Summary of landlord costs

Many potential property investors in Peterborough ask us about the costs of being a landlord. Here’s our quick snapshot guide:

Project/Inspection/Service	Per property estimate (2026)
Additional purchase ‘higher rate’ stamp duty land tax (SDLT)	A sliding scale of 5% – 17% of the property’s value
Tenant finding / let only	£400 – £900, or 8% – 10% of the first year’s rent
Full property management	10% -15% of the monthly rent
Income tax	20% (basic), 40% (higher) or 45% (additional)
Buy-to-let mortgage arrangement fee	£999 – £2,000
Property maintenance fund	£2,500 per year
Major renovations fund	10% – 15% of the gross annual rental income
Basic furniture package for a two-bedroom rental property	£1,650 – £4,000 + VAT
Gas safety certificate	Starting from £60
Testing of smoke and carbon monoxide alarms	£50 – £60
Energy performance certificate (EPC)	£60 – £120
Building Safety Act 2022 compliance	Up to £10,000
EICR electrical safety report	£150 – £300
Small appliance testing	£40 – £100
Fire risk assessment	£149 – £1,000
Basic buildings, contents & liability insurance	£250 – £307
Rent guarantee insurance	£195 – £250
Inventory	£75 – £220
Selective licensing	Part A £538 + Part B £370
Mandatory HMO license	Part A £367 + Part B £733
Additional HMO license	Part A £588 + Part B £512
ICO Registration Fee	£52 – £78
National Residential Landlords Association membership	From £125

1. Letting Agent Fees

If you’re a busy professional with a day job, you may want to hand over the responsibility for your buy-to-let to a letting agency. Progressive Lets has developed a fully managed service that allows landlords to take a passive approach. Our team ensures every property we manage is compliant and protected, covering tenants find and referencing, tenancy agreements, inventories, deposits, inspections, licensing, rent collection and ongoing maintenance.

We’re doing all this in line with the Renters’ Rights Act, with the added bonus of dealing with HMO properties, student house shares, portfolios and professional lets.

There will be letting agent fees to consider, generally 10% to 15% of the monthly rent in the Peterborough areas, although this is subject to negotiation.

2. Tenant Finding Costs

Landlords will need to consider the costs of finding tenants and then ensuring they are suitable to rent the property through background checks.

There are numerous ways to find tenants. In the long term, the most cost-effective would be to appoint a letting agent to advertise and find you a suitable tenant as part of their monthly fees. Expect to pay an average of between £400 and £900, or 8% to 10% of the first year’s rent, for a tenant-find service. The cost, however, may be incorporated into a full management fee, so it can be better value to upgrade.

Using a letting agent is essential if you want your landlord experience to run smoothly. An agency will check prospective tenants’ bank details, employment status and references for you. Finding the right tenants early on will save you money in the long term.

3. Landlord Taxes

One of the additional costs of being a landlord is a higher rate of stamp duty land tax (SDLT), in addition to the standard rate. HMRC will charge landlords between 5% and 17% of the property’s value when they make a buy-to-let purchase, using a sliding scale of thresholds.

As a landlord, you must also declare your rental income tax in an annual self-assessment return to HMRC. The income you receive from your buy-to-let is added to any salary you receive from a professional ‘day job’, with the total perhaps pushing you into a new tax bracket.

In 2026, basic rate taxpayers pay 20% tax on rental income, higher rate taxpayers 40% and additional rate taxpayers 45%. From April 2027, each rate will increase by 2%: 22% for the basic rate, 42% for the higher rate and 47% for the additional rate.

You can, however, offset certain landlord expenses against the rental income you receive. This includes the cost of replacement furniture, money spent on repairs and maintenance, service charges and ground rent, insurance, management fees, and other business expenses such as petrol and stationery.

There’s also a tax to pay when a landlord sells a property: Capital Gains Tax. This is 18% on gains made when selling for basic rate tax payers, and 24% for higher and additional rate taxpayers.

4. Mortgage costs for landlords

Unless you have the cash to purchase a property outright, you will need a buy-to-let mortgage to purchase the rental property. Lenders regard buy-to-let mortgages as a higher risk for missing mortgage payments, for instance, if your tenant does not pay their rent on time.

Also, landlords who experience voids (where they have no tenant living in the property and, therefore, no rental income) risk being unable to pay the buy-to-let mortgage during this period.

To mitigate these risks, lenders apply different terms for buy-to-let mortgages, which we have summarised below:

Deposit – The lender will usually request a higher deposit percentage of at least 20% and sometimes up to 40%.
Buy-to-let interest rates – Most buy-to-let mortgages are interest-only, and the interest rate is usually higher than a residential mortgage for the same property. At the end of the interest-only mortgage, you must pay the lender the total amount you borrowed.
Lender Fees – The mortgage arrangement fee may be higher than fees for residential mortgages, and you may need to pay a valuation or booking fee. Factor these into your financial calculations.
Stamp Duty – If you’re buying a second home, expect to pay the additional stamp duty surcharge. This is in addition to the standard stamp duty rates for the property and can add up to a high proportion of your landlord’s costs.

5. Repairs & Maintenance Costs

Landlords must maintain their rental to an acceptable level, so a contingency fund is essential to cover Landlords must maintain their rental to an acceptable level, so a contingency fund is essential to cover unexpected repairs. As a landlord, you are legally obliged to maintain the property’s structure including:

walls, windows, doors and stairs
plumbing including pipework, toilets, sinks and showers
electrics and appliances
the heating system

You can anticipate that certain things will experience wear and tear over time. Budget to replace the boiler every 10-15 years, and to repair or replace the carpets, furniture, appliances and the cooker. Also put aside money to redecorate every few years.

There will be unexpected costs too, so it’s worth budgeting for these hidden costs of being a landlord. You may end up replacing garden fences broken by the wind, fixing damage to the property caused by the tenant and repairing ceilings after a water leak.

Setting aside money for maintenance

As a general rule, put aside 1% of the property’s value for repairs each year. For an average property in Peterborough, worth around £250,000, expect maintenance costs to be approximately £2,500 per year. But you can limit the potential costs by taking out insurance policies, extended warranties and landlord emergency repair services. For plumbing and electrical faults, British Gas offers a landlord cover service. There are other policies, so do plenty of research and shop around.

Setting aside money for major renovations

Aspects of the property will also need to be renovated over time, including a new roof, bathroom, kitchen or replacing windows and doors to modernise the property. For large renovation projects, the work should be completed between tenancies to avoid disrupting tenants, which will come at a further cost.

6. Furniture & furnishing expenses

If you’re looking to attract young professionals or students as tenants, then you’re more likely to be successful if you offer a furnished property. On the other hand, families usually prefer unfurnished accommodation since they will probably have accumulated furniture.

The furniture you’ll need includes things like:

A sofa
Coffee table
Dining table
Bed and mattress

You don’t have to buy new and can often pick up good items in house clearance sales or online market sites, Items must, however, comply with the Furniture and Furnishings (Fire) (Safety) Regulations 1988 and have their original fire-safe labels still attached.

7. Health & safety costs for landlords

Statutory certificate costs

These additional costs of being a landlord are unavoidable – safety certificates cover your legal requirements when renting a property in the UK.

Gas safety certificate – You need all gas-fed appliances checked by a Gas Safe registered engineer before you let your flat or house out to a tenant, and annually throughout the tenancy. Expect to pay £60 and upwards for a gas safety certificate in Peterborough, issued by a Gas Safe registered engineer.
Energy Performance Certificate – An Energy Performance Certificate (EPC) is a legal requirement – it indicates how energy efficient your property is, and landlords need an E rating or higher. The cost of an EPC typically starts at £60, increasing to around £120 for larger properties.
Building Safety Act Compliance – If the building is over 11 metres tall, or 5 storeys high, you need to follow the Building Safety Act 2022. This involves tighter structural and fire safety rules, keeping a digital record and carrying out regular inspections. The cost is capped at £10,000 outside the London area, with exemptions for properties worth less than £175,000.
Electrical Installation Condition Report – Landlords in England need an Electrical Installation Condition Report (EICR) every five years. EICR reports usually cost between £150 to £300, or higher for larger properties.

Your tenant must be given a copy of the gas safety certificate, EPC and EICR when they move in, along with safety information.

Fire Safety Costs

A working smoke detector should be fitted on each floor of your property, and a carbon monoxide alarm in any room with a fixed combustion appliance (for example, an open fire or wood burning stove but excluding gas cookers).

If you are ambitious and your first buy-to-let is a House of Multiple Occupation (HMO), then there are additional fire protection measures depending on how many tenants you have. For instance, with five or more tenants, you’ll need a fire door fitted, a fire extinguisher, a fire blanket and sprinklers.

8. Covering void periods

It’s important to account for void periods when the property is empty and there is no rental income. Landlords should have a contingency budget and expect to receive around 90% of the total potential rent annually. This can happen if the tenants have vacated the property and you’ve not found another, or if you’ve had to evict a tenant for tenancy breaches (e.g. subletting) and need to look for someone new.

There are also rental protection policies that landlords can purchase to insure against rent arrears or loss of rent due to damage to the property. There will always be vacant periods, so ensure you plan ahead for times without monthly rent coming in.

9. Landlord inventory costs

You can get a letting agent or professional inventory company to inventory your property and its contents. This involves detailing all items and their condition when the tenant moves in. You should budget between £75 – £220 for an inventory.

Photographs are often taken too, especially for large or more expensive items. At the end of the tenancy, compare the condition of your property to the initial inventory and deduct money from the tenant’s deposit for any damage. If the tenant disputes the claim, the inventory provides written – and visual – evidence for a Tenancy Deposit Scheme panel hearing.

10. Selective Licensing Costs For Landlords

The local authority runs a selective licensing scheme in Peterborough. Applying for a licence takes up to 6 months, and it’s valid until the 5-year scheme ends. You will pay two fees, Part A to cover your application at a cost of £538, and Part B to cover compliance at a cost of £370.

11. HMO Costs For Landlords

There are two main sets of costs for landlords when letting a large HMO property:

The HMO licencing costs
The extra safety & compliance costs

HMO licencing costs

There is a mandatory licence for HMOs in Peterborough, which you must have if you rent out a property to five or more residents, made up of at least 2 households who share a bathroom or toilet, and kitchen. Note, these are hidden costs of being a student landlord that you should factor in. A five-year HMO licence must be obtained at a cost of £367 for Part A and £733 for Part B. Find out more about the requirements in our article – HMO licences in Peterborough.

Peterborough Council also has a new city-wide Additional HMO Licensing Scheme launched on 26 January 2026. It applies to HMOs not covered by mandatory licensing and carries a £1,100 fee – Part A at £588 and Part B at £512.

HMO compliance & safety costs

Being a HMO landlord means you have to cover more hidden costs of being a landlord to meet stricter health and safety standards. These include:

PAT testing – recommended for all properties, but required for HMO landlords in Peterborough, annual small appliance testing ensures any appliances you provide are safe to use, for cost of around £40 to £100 (a minimum call out charge)
Fire safety – budget for fire doors, alarms and a fire blanket for the kitchen
Extra maintenance or cleaning – upkeep can take as much as 5% out of your earnings
Utility bills – as an HMO landlord, you will usually pay the utilities and it’s your job to keep these up to date
Council tax – you’re also responsible for paying council tax, though you can apply for an exemption for any qualifying tenants

12. Landlord Insurance Fees

Landlords must insure the building (buildings insurance will usually be a condition of their mortgage), but they can also take out additional policies.

Liability insurance – Taking out liability insurance means you are protected should a tenant or guest get injured, for example, due to a wonky floorboard or falling plaster in your property. Landlords who provide contents within the property, such as furniture or appliances, should also take out contents insurance to cover these items.
Void period cover – As a landlord, you can also protect yourself against voids (i.e. when you don’t have a tenant) to ensure you continue to receive a monthly income. Opting for a rent guarantee scheme will ensure you are not financially impacted by them.
Eviction costs cover – Some specialist landlord insurance policies will cover buildings, contents and legal expenses should you go through the courts to evict a tenant. Legal fees for evicting tenants can run into the thousands, so getting insurance cover for these costs is highly recommended.

13. ICO Registration Fees

Landlords must also register with the Information Commissioner’s Office as you will be processing personal data. Using this information in tenancy agreements and performing credit checks involves processing data, and landlords must pay the registration fee between £52 or £78, unless they are not classed as data controllers.

14. Landlords Association Memberships

Becoming a National Residential Landlords Association (NRLA) member is recommended if you are not using a letting agent. Membership fees start from £75 and provide you with access to expert advice and resources.

15. Future Landlord Costs To Expect

The Renters’ Rights Act details there will be a mandatory requirement for landlords to sign up to a new private rental sector ombudsman and a landlords database. Both will carry a subscription cost, to be confirmed.

Buy-to-lets will also have to demonstrate improved living conditions and energy credentials. All private lets will need an EPC of at least an C in 2030 and landlords will have to budget for improvements that will enable them to reach this new rating. A new Decent Homes Standard may also force landlords to renovate properties, especially kitchens and bathrooms.

Consideration should also be given to the eviction process from 1st May 2026 when Section 8 notices become the only way to regain possession. Estimated costs range from £110 to £350 for a straightforward eviction, with fees rising to £3,000 when solicitors, court fees and bailiffs are involved.

In Conclusion

If you’re a new landlord in the Peterborough area, we can help you with every aspect of letting properties. Contact us today to find out more about our property management services for landlords in Kettering, Rushden, Stamford, Wellingborough and Northampton.

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Wayne Beecham

Wayne is East Midland’s answer to property management. His hard work and high standards of service have gained him a fierce reputation within the regional lettings market. He knows what it takes to own and manage a profitable portfolio himself, because he is not only a successful investor and landlord, but co-founder and “hands on” managing director of Progressive Lets.

Landlord Checklist for Renting a House in Peterborough