Landlord incomes hit record £89,000
Landlord incomes have risen sharply as strong tenant demand, long tenancy lengths and high levels of tenant satisfaction continue to underpin the Private Rented Sector (PRS).
The latest Landlord Trends research from Pegasus Insight reveals that average annual rental income has reached a record £89,000, up £14,000 in the last quarter alone and £16,000 higher than a year ago. After dipping briefly in Q4 2025, landlord incomes rebounded sharply in Q1 2026 and are now more than one fifth higher than they were 12 months ago. The findings point to a sector where landlords continue to benefit from resilient demand, strong occupancy levels and stable long-term tenancies, despite ongoing regulatory and economic uncertainty.
The increase in rental income comes alongside evidence from Pegasus Insight’s Tenant Trends research that tenants remain settled and generally positive about their renting experience.
The average tenant has rented for around eight years and has spent more than five years in their current property. Two thirds intend to remain in their current home when their tenancy agreement ends, while more than two thirds describe their recent rental experience as positive. Overall, 76% say they are satisfied with the service provided by their landlord or letting agent.
The findings suggest that landlord income growth is being supported not simply by rent increases, but by strong occupancy levels, low tenant turnover and sustained demand for rental accommodation.
Alongside the rise in rental income, the average landlord portfolio is now valued at £1.69 million, reflecting the continued strength of the underlying market.
Mark Long, founder and managing director of Pegasus Insight, commented: “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-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.
“While affordability pressures remain a concern and landlords continue to face rising compliance and operating costs, demand for rental housing remains robust. The PRS continues to provide homes for millions of people who value the flexibility and convenience that renting offers.
“These findings suggest that, despite the uncertainty surrounding future regulation, the core relationship between landlords and tenants remains remarkably resilient.”