Average landlord portfolio now generates almost £90,000 a year in rental income

Rental income climbs by almost £16,500 a year

The research shows that the average landlord currently owns 7.3 properties with a combined estimated value of £1.7m, both unchanged on an annual basis. 

However, the gross rental income generated by the average portfolio has increased considerably. Estimated annual rental income per property has risen by 22.9%, from £9,860 to £12,117 in Q1 2026. 

As a result, the estimated gross rental income generated across the average 7.3-property portfolio has climbed from £71,978 to £88,454 per year, an annual increase of £16,476. 

Mortgage borrowing also on the rise

While rental income has increased, so too has the level of borrowing associated with the average landlord portfolio. 

The estimated amount owed through buy-to-let mortgage borrowing has risen from £642,000 to £736,000. That's an annual increase of £94,000, or 14.6%, despite the estimated value of the average portfolio remaining unchanged at £1.7m. 

This demonstrates why rising gross rental income should not necessarily be viewed as an equivalent improvement in landlord profitability, with the average landlord overseeing a substantial leveraged asset base alongside the wider costs associated with running and maintaining a rental portfolio. 

The cost of professionally managing a £1.7m portfolio

Rushbrook also looked at the potential cost of professionally managing the average landlord portfolio. 

Fully managed rental services typically cost between 8% and 15% of monthly rental income, plus VAT. Using the midpoint of 11.5%, Rushbrook estimates that professional management of a single property generating the current average rental income would cost approximately £139 per month including VAT. 

Across the average portfolio of 7.3 properties, this equates to an estimated £1,017 per month, or £12,207 per year, based on current rental income levels. 

While this represents an annual increase of 22.9%, or £2,274, Rushbrook argues that the figures illustrate the scale of the assets, income, and liabilities being overseen by today's portfolio landlords and the increasingly professional approach required to manage them effectively.

 Roma Sharma, Managing Director of Rushbrook, commented: 

“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. At the same time, the average landlord is carrying an estimated £736,000 in mortgage borrowing, so these are substantial, leveraged property businesses that require considerable ongoing oversight. 

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, and the amount of mortgage borrowing associated with the average portfolio has also increased. 

Then there's the practical reality of managing multiple individual properties. Each one brings its own tenancy, maintenance requirements, inspections, compliance obligations, and day-to-day administration, and the workload involved has only become more demanding as the regulatory landscape has evolved. 

Professional property management is, of course, another cost that landlords have to account for, but the question for a portfolio landlord is increasingly whether managing everything themselves represents the best use of their time and resources. 

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 and ensuring that its assets, tenants, and regulatory obligations are being properly looked after.