Editor's note: This brief was summarised by The Property AI Newsroom from a report by PropertyWire. Read the original article for full details.
Landlord Rental Income Up 23% as Arrears Affect 850,000
Average landlord rental income increased by 23% in the year to March 2026, according to new research reported by PropertyWire. Despite this rise, nearly 850,000 landlords experienced rent arrears during the same period.
Data from LegalforLandlords shows that average gross rental income per property rose from £9,860 in the first quarter of 2025 to £12,117 in the corresponding period of 2026. The combined value of UK landlord portfolios is now estimated at £4.8 trillion.
Based on Mortgage Works data, the research indicates the average landlord portfolio is now valued at £1.7 million and comprises 7.3 properties. However, performance varied considerably across regions. The West Midlands recorded 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 declined in the North West, Yorkshire & Humber, and the South West. Landlords in Central London and the North East reduced portfolio sizes by an average of 1.9 properties.
LegalforLandlords estimates that approximately 30% of UK landlords experienced arrears during the past year. The research highlights that the UK housing market is showing resilience, but there are significant regional differences and ongoing challenges with arrears and regulatory pressures.
The findings underscore the divergent fortunes within the buy-to-let market, with income growth offset by rising arrears and increasing regulatory demands on landlords across the country.
Source: PropertyWire