Average landlord rental income increased by 23% in the year to March 2026, though nearly 850,000 landlords experienced rent arrears during the same period, according to new research.
Data from LegalforLandlords shows 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.
Portfolio values reach £1.7m average
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. Portfolio values declined in the North West, Yorkshire & Humber and the South West, whilst landlords in Central London and the North East reduced portfolio sizes by an average of 1.9 properties.
The regional variations come as the UK housing market shows resilience despite weaker demand in certain areas.
Arrears affecting 30% of landlords
LegalforLandlords estimates approximately 30% of UK landlords experienced arrears during the past year. Sim Sekhon, Group Chief Executive at the landlord services company, said: “Landlords are operating in an increasingly complex market where headline performance figures only tell part of the story.”
“The landlords performing strongest are those taking a more strategic approach to managing risk, whether that’s through stronger tenant referencing, rent protection measures, or reviewing the long-term structure of their portfolios,” Sekhon added.
He warned that the Renters’ Rights Act is already influencing landlord behaviour, noting that affordability checks, early arrears intervention and professional portfolio management are becoming increasingly important as regulation tightens. These challenges mirror broader market shifts, with some firms consolidating their positions through acquisitions in the rental sector.
The findings highlight the divergent fortunes within the buy-to-let market, with income growth offset by rising arrears and increasing regulatory pressures facing landlords across the country.
