"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"
- Mark Long - Pegasus Insight
Average landlord rental income has reached a record £89,000, according to the latest Landlord Trends research from Pegasus Insight, rising £14,000 in a single quarter and £16,000 higher than a year ago. After dipping briefly in Q4 2025, incomes rebounded sharply in Q1 2026 and are now more than a fifth above where they stood 12 months earlier.
The figures point to a private rented sector underpinned by resilient demand, strong occupancy, and stable long-term tenancies, despite continuing regulatory and economic uncertainty.
Alongside the income data, Pegasus Insight's Tenant Trends research paints a picture of a settled tenant base. The average tenant has rented for around eight years and spent more than five years in their current property.
Two-thirds intend to stay when their tenancy ends, more than two-thirds describe their recent rental experience as positive, and 76% say they are satisfied with their landlord or letting agent.
The average landlord portfolio is now valued at £1.69 million, reflecting continued strength in underlying asset values.
"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," said Mark Long, founder and managing director of Pegasus Insight.
"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."
The growth in landlord rental income appears to be driven by more than rent increases alone. Low tenant turnover and sustained occupancy levels are playing a significant role, reducing the void periods and re-letting costs that can erode returns.
For landlords navigating a more demanding compliance environment, that underlying stability offers a degree of reassurance that the market's core dynamics remain intact.
