The latest research industry trend analysis from LegalforLandlords reveals that average landlord rental income has increased by 23% over the past 12 months, despite an estimated 846,000 landlords experiencing rent arrears during the same period.
Analysis of newly published landlord trends data for Q1 2026 shows that the average value of a UK landlord portfolio now stands at £1.7m, while the average portfolio size is 7.3 properties.
Although both figures are unchanged compared to this time last year (Q1 2025), the data highlights notable regional shifts beneath the national averages.
The West Midlands recorded the largest increase in portfolio size, with landlords adding an average of +3.7 properties year-on-year to reach 11.5 properties per portfolio. Portfolio sizes also increased in the East of England (+1 property), Yorkshire & Humber (+0.9), the South West (+0.6), and the South East (+0.5).
In contrast, landlords in Central London and the North East saw the sharpest declines, with average portfolio sizes falling by -1.9 properties in both regions. Wales (-1.1), the East Midlands (-1), Outer London (-1), and the North West (-0.6) also recorded reductions over the past year.
Portfolio values have also shifted significantly across some UK regions. The West Midlands saw the strongest annual growth, with average portfolio values increasing by 29.4% to £2.2m. The East of England (+28.6%) and South East (+15.8%) also recorded substantial gains.
Meanwhile, the largest declines in portfolio value were seen in the North West (-27.8%), Yorkshire & Humber (-25%), and the South West (-23.8%).
Rental income per property has increased strongly nationwide. Average gross rental income across the UK rose by 22.9% over the past year, climbing from £9,860 per annum in Q1 2025 to £12,117 in Q1 2026.
The North West recorded the biggest increase in average income per property, up 52.2%, followed by the West Midlands (+49.2%), Wales (+45.3%), East of England (+38.2%), and Central London (+32.5%). The North East was the only region to record a decline, with average income per property falling by -19.4% year-on-year.
With the estimated number of UK landlords now standing at just over 2.8 million, LegalforLandlords estimates the combined value of landlord portfolios across the UK has reached £4.8 trillion.
However, despite rising portfolio values and rental income, rent arrears remain a major issue for the sector. With an estimated 30% of UK landlords experiencing arrears at some point over the past year, this equates to approximately 846,000 landlords affected nationwide.
Sim Sekhon, Group CEO at LegalforLandlords, commented:
“Landlords are operating in an increasingly complex market where headline performance figures only tell part of the story. While rental income growth reflects continued tenant demand and sustained pressure on supply, many landlords are simultaneously facing higher borrowing costs, rising compliance obligations, and a substantial risk of arrears.
We are seeing a widening gap between portfolio growth and portfolio resilience. 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.
The Renters’ Rights Act is also already influencing landlord behaviour. As the sector moves into a more regulated environment, particularly around possession reform and tenant protections, preventative measures such as affordability checks, early arrears intervention, and professional portfolio management are becoming increasingly important.
At the same time, the regional variation in this data shows that local market dynamics are now playing a much greater role in investment performance. Landlords can no longer rely on broad national trends alone when making investment decisions.”
