The average landlord portfolio is generating almost £90,000 a year in gross rental income as higher rents increase the value of income flowing through property businesses, new analysis suggests.
Research from property management specialist Rushbrook puts average annual rental income across a 7.3-property portfolio at £88,454 in Q1 2026, up £16,476 from £71,978 a year earlier.
The estimated value of the average portfolio remained unchanged at £1.7m, while annual rental income per property increased 22.9% from £9,860 to £12,117.
However, the figures also point to growing financial commitments for portfolio landlords, with estimated buy-to-let mortgage borrowing increasing by £94,000 over the year.
BORROWING INCREASES
According to the analysis, average mortgage borrowing across a landlord portfolio increased 14.6% from £642,000 to £736,000.
Rushbrook says the figures demonstrate why increases in gross rents should not be interpreted as equivalent increases in landlord profits, with mortgage payments, taxation, maintenance and regulatory costs all having to be met from rental income.
The findings also illustrate the increasingly professional nature of portfolio landlording at a time when operators are dealing with significant regulatory change following the introduction of the Renters’ Rights Act.
Roma Sharma (main picture, inset), Managing Director of Rushbrook, says: “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.”
MANAGEMENT COSTS
Rushbrook also modelled the cost of outsourcing management of the average portfolio.
Using a fully managed fee of 11.5% of rental income plus VAT, the firm estimates professional management would cost approximately £1,017 a month, or £12,207 a year.
Sharma adds: “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.
“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.”
