Average landlord rental income has jumped 23% in the past year, but nearly 850,000 landlords were also facing rent arrears, it has been revealed.

Research from LegalforLandlords found average gross rental income per property climbed from £9,860 in the first three months of 2025 to £12,117 in same period in 2026, with the combined value of UK landlord portfolios now estimated at £4.8trillion.

It comes despite landlords having faced an increasingly challenging regulatory environment.

Average £1.7m portfolio

The resesarch, based on Mortgage Works data, says the average landlord portfolio is now worth £1.7million and consists of 7.3 properties, although performance varied widely across different regions.

The West Midlands recorded the strongest growth, with average portfolio values rising 29.4% to £2.2million and portfolio sizes increasing by 3.7 properties year-on-year to an average of 11.5.

By contrast, portfolio values fell heavily in the North West, Yorkshire & Humber and the South West, and landlords in Central London and the North East reduced portfolio sizes by an average of 1.9 properties.

However, LegalforLandlords estimates that around 30% of UK landlords experienced arrears during the past year.

Headline performance figures only tell part of the story.”

Sim Sekhon (pictured), Group Chief Executive at the landlord services company, says: “Landlords are operating in an increasingly complex market where headline performance figures only tell part of the story.”

He adds: “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.”

Sekhon also warns that the Renters’ Rights Act is already influencing landlord behaviour, adding that affordability checks, early arrears intervention and professional portfolio management are becoming increasingly important as regulation tightens