The UK property management sector is set for further growth as regulatory changes drive landlord demand but rising competition is putting pressure on revenues and standards.
New analysis from Rushbrook & Rathbone shows the number of property management firms increased by 5.4% in 2025, following a 5.1% rise the previous year.
Despite this expansion, estimated revenue per business fell by 1.3% in 2025, after a sharper 6.5% decline in 2024, pointing to a more crowded and competitive marketplace.
Over the past decade, average revenue per firm has dropped by 23%, highlighting the longer-term squeeze on margins across the sector.
COMPLEX REQUIREMENTS
The introduction of the Renters’ Rights Act 2025 is expected to accelerate demand for professional management services, as compliance requirements around tenant management, rent collection and property standards become more complex.
This is likely to push more landlords towards outsourcing, particularly those struggling to keep pace with evolving legal obligations.
However, the report warns that increased demand is being met by a growing number of operators, raising concerns over consistency of service and standards.
As competition intensifies, firms are being forced to balance pricing pressures with the need to invest in compliance, systems and service delivery.
The findings suggest the role of property managers is shifting, with greater emphasis on regulatory expertise and risk management rather than traditional administrative functions.
MORE COMPETITION
Sarah Rushbrook (main picture, inset), Founder at Rushbrook & Rathbone, says: “The continued growth in the number of businesses operating within the property management sector is a positive sign, but it inevitably increases competition and places pressure on revenue.
“What we are seeing is a more crowded and fragmented market where not all operators are delivering the same level of service, expertise or compliance.”
She adds that as the sector becomes more compliance-driven, professionalism and consistency will become increasingly important differentiators for established firms.
