Average landlord rental income has climbed to a record £89,000 a year as strong tenant demand, long tenancy lengths and high levels of tenant satisfaction continue to support the private rented sector.
The latest Landlord Trends research from Pegasus Insight found that average annual rental income increased by £14,000 during the first quarter of 2026 alone and now stands £16,000 higher than a year ago.
The figures suggest landlords are continuing to benefit from resilient demand and strong occupancy levels despite ongoing regulatory change and economic uncertainty.
According to the research, average landlord income dipped briefly towards the end of 2025 before rebounding strongly in Q1 2026. Rental income is now more than 20% higher than it was 12 months ago.
STRONG RENTAL MARKET
At the same time, the average landlord portfolio has reached a value of £1.69m, reflecting continued strength across the rental market.
The income growth comes alongside evidence that tenants remain settled and largely satisfied with their renting experience.
Separate Tenant Trends research from Pegasus Insight found that the average renter has been in the private rented sector for around eight years and has lived in their current property for more than five years.
Two-thirds of tenants said they expect to remain in their current home when their tenancy agreement expires, while more than two-thirds described their recent renting experience as positive. Overall, 76% said they were satisfied with the service provided by their landlord or letting agent.
The findings suggest that rising landlord income is being supported not only by rental growth but also by low levels of tenant turnover, reducing void periods and associated costs.
GREATER CERTAINTY
Mark Long (main picture, inset), Founder and Managing Director of Pegasus Insight, says: “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 said long-term tenancies provide greater certainty for both landlords and renters.
He added: “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.
“These findings suggest that, despite the uncertainty surrounding future regulation, the core relationship between landlords and tenants remains remarkably resilient.”
