Average landlord rental income has increased 23% over the past 12 months, it’s claimed.

This is despite an estimated 846,000 landlords experiencing rent arrears during the same period.

Analysis of newly-published landlord trends data for the first quarter of this year shows that the average value of a UK landlord portfolio at £1.7m, while the average portfolio size is 7.3 properties.

Although both are unchanged compared to Q1 2025, the data highlights regional shifts beneath the national averages.

The West Midlands recorded the largest increase in portfolio size, with landlords adding an average of +3.7 properties year-on-year to reach 11.5 properties per portfolio. 

Portfolio sizes also increased in the East of England (+1 property), Yorkshire & Humber (+0.9), the South West (+0.6), and the South East (+0.5).

In contrast, landlords in Central London and the North East saw the sharpest declines, with average portfolio sizes falling by -1.9 properties in both regions. Wales (-1.1), the East Midlands (-1), 

Outer London (-1), and the North West (-0.6) also recorded reductions over the past year.

Portfolio values have also shifted significantly across some UK regions. 

The West Midlands saw the strongest annual growth, with average portfolio values increasing by 29.4% to £2.2m. The East of England (+28.6%) and South East (+15.8%) also recorded substantial gains.

Meanwhile, the largest declines in portfolio value were seen in the North West (-27.8%), Yorkshire & Humber (-25%), and the South West (-23.8%).

Rental income per property has increased strongly nationwide. 

Average gross rental income across the UK rose by 22.9% over the past year, climbing from £9,860 per annum in Q1 2025 to £12,117 in Q1 2026.

The North West recorded the biggest increase in average income per property, up 52.2%, followed by the West Midlands (+49.2%), Wales (+45.3%), East of England (+38.2%), and Central London (+32.5%). 

The North East was the only region to record a decline, with average income per property falling by -19.4% year-on-year.

With the estimated number of UK landlords now standing at just over 2.8 million, LegalforLandlords estimates the combined value of landlord portfolios across the UK has reached £4.8 trillion.

However, despite rising portfolio values and rental income, rent arrears remain a major issue for the sector. 

With an estimated 30% of UK landlords experiencing arrears at some point over the past year, this equates to approximately 846,000 landlords affected nationwide.

Sim Sekhon of LegalforLandlords, comments:

“We are seeing a widening gap between portfolio growth and portfolio resilience. 

“The landlords performing strongest are those taking a more strategic approach to managing risk, whether that’s through stronger tenant referencing, rent protection measures, or reviewing the long-term structure of their portfolios.

“Regional variation in this data shows that local market dynamics are now playing a much greater role in investment performance. 

“Landlords can no longer rely on broad national trends alone when making investment decisions.”