The average UK landlord portfolio generates £88,454 a year in gross rental income, according to analysis by property management specialist Rushbrook.
The figure has risen by £16,476 over the past year, although higher mortgage borrowing means the increase does not translate directly into improved profitability.
Rushbrook’s analysis found that the average landlord owns 7.3 properties with a combined estimated value of £1.7 million. Both figures were unchanged on an annual basis.
RENTAL INCOME INCREASES
Estimated annual rental income per property rose by 22.9%, from £9,860 to £12,117, in the first quarter of 2026.
As a result, the gross rental income generated by an average portfolio increased from £71,978 to £88,454 a year.
MORTGAGE BORROWING RISES
The estimated amount owed through buy-to-let mortgages increased from £642,000 to £736,000. This was an annual rise of £94,000, or 14.6%, despite the estimated value of the average portfolio remaining at £1.7 million.
Rushbrook said the figures showed why an increase in gross rental income should not be regarded as an equivalent improvement in landlord profits. Mortgage payments sit alongside maintenance, taxation, compliance and other costs associated with operating a rental portfolio.
MANAGEMENT COSTS
The company also estimated the potential cost of employing a professional manager for the average portfolio.
Fully managed rental services typically charge between 8% and 15% of monthly rental income, plus VAT. Using the midpoint of 11.5%, Rushbrook calculated that managing one property generating the average rental income would cost about £139 a month, including VAT.
Across 7.3 properties, this would amount to an estimated £1,017 a month, or £12,207 a year. The annual cost has risen by an estimated £2,274, or 22.9%, in line with rental income.
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.
“The average portfolio comprises more than seven properties, is worth around £1.7m and is generating almost £90,000 in gross rental income each year. At the same time, the average landlord is carrying an estimated £736,000 in mortgage borrowing, so these are substantial, leveraged property businesses that require considerable ongoing oversight.
“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.
“Then there’s the practical reality of managing multiple individual properties. Each one brings its own tenancy, maintenance requirements, inspections, compliance obligations, and day-to-day administration, and the workload involved has only become more demanding as the regulatory landscape has evolved.
“Professional property management is, of course, another cost that landlords have to account for, but the question for a portfolio landlord is increasingly whether managing everything themselves represents the best use of their time and resources.
“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.”
