Size and value of portfolios is constant, borrowing is up 14.6%
Landlords are seeing nearly £90,000 a year in gross rental income from the average UK landlord portfolio, up annually by nearly £16,500 according to Rushbrook.
It estimates that the average landlord currently owns 7.3 properties with a combined estimated value of £1.7m.
Both the number and value of such properties have stayed constant; however, the estimated annual rental income per property has risen by 22.9%, from £9,860 to £12,117 in Q1 2026. As a result, the estimated gross rental income generated across the average 7.3-property portfolio has risen from £71,978 to £88,454 per year, an annual increase of £16,476.
Although the average portfolio size has not changed, buy-to-let borrowing has increased 14.6% from £642,000 to £736,000, an annual increase of £94,000.
Management costs up 23%
Costs of managing such a portfolio have also increased, according to Rushbrook’s calculations. It says fully managed rental services typically cost between 8% and 15% of monthly rental income, plus VAT, so using a midpoint of 11.5%, it estimates that professional management of a single property generating the current average rental income would cost approximately £139 per month including VAT.
Across the average portfolio of 7.3 properties, this equates to an estimated £1,017 per month, or £12,207 per year, based on current rental income levels, an annual increase of 22.9%, or £2,274.
Roma Sharma, managing director of Rushbrook, said: “There’s still a tendency to think of a landlord as someone who owns one or two properties and collects the rent each month, but these figures demonstrate the scale of the property businesses many landlords are actually running.
“It’s important to distinguish gross rental income from profit. While rental income has increased substantially over the last year, landlords still have mortgage costs, maintenance, taxation, compliance, and numerous other operational expenses to account for, and the amount of mortgage borrowing associated with the average portfolio has also increased.
“When you’re overseeing £1.7m worth of property and almost £90,000 in annual gross rental income, good management isn’t simply about collecting rent and arranging the occasional repair. It’s about protecting the performance of a significant property business and ensuring that its assets, tenants, and regulatory obligations are being properly looked after.”
