Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.
Landlord Income Up, But Arrears Remain a Major Issue
Average landlord rental income in the UK has increased by 23% over the past year, but a significant number of landlords are still dealing with rent arrears. Research from LegalforLandlords, as reported by The Negotiator, found that nearly 850,000 landlords experienced arrears during the period.
The data shows that average gross rental income per property rose from £9,860 in the first quarter of 2025 to £12,117 in the same period of 2026. The combined value of UK landlord portfolios is now estimated at £4.8 trillion.
Regional Variations in Portfolio Performance
The research, which is based on Mortgage Works data, indicates that the average landlord portfolio is now worth £1.7 million and consists of 7.3 properties. However, performance varied across regions. The West Midlands saw the strongest growth, with average portfolio values rising 29.4% to £2.2 million and portfolio sizes increasing by 3.7 properties year-on-year to an average of 11.5.
In contrast, portfolio values fell in the North West, Yorkshire & Humber, and the South West. Landlords in Central London and the North East reduced their portfolio sizes by an average of 1.9 properties.
Arrears and Regulatory Pressures
LegalforLandlords estimates that around 30% of UK landlords experienced arrears in the past year. The report notes that landlords are operating in a challenging regulatory environment, with the Renters’ Rights Act already influencing landlord behaviour. The importance of affordability checks, early arrears intervention, and professional portfolio management is highlighted as regulation tightens.
Source: The Negotiator