UK landlords see 23% rental income rise despite widespread arrears

Research by LegalforLandlords shows that the average gross rental income per UK property rose by 22.9‑23% in the year to Q1 2026, increasing from £9,860 to £12,117. The typical landlord now holds a portfolio valued at about £1.7 million across an average of 7.3 properties, and the combined value of landlord portfolios across the UK is estimated at £4.8 trillion.

Approximately 30% of landlords – roughly 846,000‑850,000 owners – reported rent arrears during the same period. Regional analysis revealed the strongest growth in the West Midlands, where average portfolio values jumped 29.4% to £2.2 million and portfolio sizes rose to 11.5 properties per landlord. Gains were also seen in the East of England and South East, while the North West, Yorkshire & Humber, South West and parts of London saw declines.

Sim Sekhon, group chief executive of LegalforLandlords, warned that rising income masks rising pressures, including higher borrowing costs, tighter compliance under the Renters’ Rights Act, and the risk of further arrears. He highlighted that landlords who adopt stronger tenant referencing, rent‑protection measures and professional portfolio management are better positioned to weather the increasingly regulated market.