Average annual rental income has reached a record £89,000, according to the latest Landlord Trends research from Pegasus Insight.

The figure is £14,000 higher than the previous quarter and £16,000 above the level recorded a year earlier.

Pegasus Insight said landlord incomes had recovered strongly in the first quarter of 2026 after a brief fall in the final quarter of 2025, leaving them more than one fifth higher than 12 months ago.

The research suggests landlords are continuing to benefit from resilient tenant demand, strong occupancy and longer tenancy lengths, despite regulatory and economic uncertainty.

Pegasus Insight’s Tenant Trends research also found that tenants remain settled. The average tenant has rented for about eight years and has spent more than five years in their current property.

Two thirds said they intended to remain in their current home when their tenancy agreement ends, while more than two thirds described their recent rental experience as positive. Overall, 76% said they were satisfied with the service provided by their landlord or letting agent.

Pegasus Insight said the findings suggested landlord income growth was being supported not only by rent increases, but also by high occupancy, low tenant turnover and sustained demand for rental homes.

The average landlord portfolio is now valued at £1.69 million.

Mark Long, founder and managing director of Pegasus Insight, said: “Much of the debate around the PRS focuses on regulation, taxation and the challenges facing landlords, but these findings are a reminder that the market’s underlying fundamentals remain strong.

“The increase in rental income is significant, but what is perhaps more important is the quality of that income. Our Tenant Trends research shows that tenants are staying in their homes for longer, are generally satisfied with their rental experience and have little intention of moving.

“Long-term tenants provide landlords with stable, predictable income streams and reduce the costs and disruption associated with frequent tenant turnover. That stability is valuable for landlords and beneficial for tenants too.

“While affordability pressures remain a concern and landlords continue to face rising compliance and operating costs, demand for rental housing remains robust. The PRS continues to provide homes for millions of people who value the flexibility and convenience that renting offers.

“These findings suggest that, despite the uncertainty surrounding future regulation, the core relationship between landlords and tenants remains remarkably resilient.”