The UK’s property management sector is forecast to approach £38bn in revenue by 2026 as landlords increasingly turn to professional services to manage the growing operational and regulatory demands of the private rented sector.
New analysis from Rushbrook & Rathbone shows the market rebounded strongly in 2025 after a modest decline the previous year.
Total industry revenue rose 4.1% to £37.7bn in 2025, following a 1.7% contraction in 2024 when the market was estimated at £36.25bn.
The firm expects further expansion this year, with the sector projected to grow by 0.7% in 2026, pushing total revenue to just under £38bn.
MANAGEMENT SHIFT
Over the past decade, the market has increased by around 26%, reflecting a steady shift towards professional management within the rental sector.
According to the analysis, landlords are increasingly seeking external support as managing rental property becomes more complex and time-consuming.
Compliance obligations, tenant management, maintenance coordination and financial administration have all become more demanding, particularly as regulation within the private rented sector continues to expand.
KEY DRIVERS
Rushbrook & Rathbone identified three key drivers behind the growing demand for professional management services: limited time for landlords who manage property alongside other careers, the increasing complexity of regulation, and the operational challenges associated with larger property portfolios.
Many landlords lack the time required to oversee tenant relationships, organise repairs and maintenance, and manage financial administration. Professional management companies provide dedicated teams to handle these responsibilities, helping landlords ensure properties remain compliant and operational.
At the same time, the regulatory framework governing rental property has grown significantly, covering areas such as safety certification, deposit protection and licensing requirements, alongside evolving tenant rights legislation.
COMPLIANCE DRIVEN SECTOR
Roma Sharma (main picture, inset), Managing Director of Rushbrook & Rathbone, says: “Managing rental property today involves far more than collecting rent and arranging the occasional repair.
“The sector has become increasingly operational and compliance driven, with landlords needing to navigate complex legislation, coordinate maintenance and contractors, maintain accurate records, and respond to tenant needs often around the clock.
“As a result, professional management is increasingly being viewed not as an optional layer, but as an important part of protecting both the asset itself and the landlord’s time.
“What we are seeing is a gradual shift in how property management is perceived, particularly among portfolio landlords and investors who recognise the value of having structured systems, specialist expertise and reliable contractor networks in place to support the long-term performance of their assets.”
