"What we are seeing is a more crowded and fragmented market, where not all operators are delivering the same level of service, expertise or compliance."
- Sarah Rushbrook - Rushbrook & Rathbone
The UK property management sector is growing, but increasing competition is pushing revenue per firm lower, according to new insight from Rushbrook & Rathbone.
With the Renters' Rights Act expected to drive further demand for professional management services, the combination of market growth and tightening margins could place greater pressure on standards across the sector.
Rushbrook & Rathbone tracked the number of operational businesses in the property management sector alongside estimated revenue per business over time. The data shows the number of firms grew by 5.4% in 2025, following a 5.1% rise in 2024, pointing to sustained expansion.
That growth, however, has come at a cost. Estimated revenue per business fell 1.3% year on year in 2025, after a steeper 6.5% reduction the year before. Over the past decade, revenue per firm has dropped 23% in total, a reflection of a marketplace that has become significantly more crowded.
Regulatory change is adding to the pressure. As compliance requirements, tenant management obligations, rent collection processes and property standards become more demanding under the Renters' Rights Act, many landlords are expected to lean more heavily on professional management services.
The result is a sector where demand remains strong but a growing number of operators are competing for the same pool of clients, squeezing margins further and making consistent service delivery harder to sustain.
Sarah Rushbrook, founder of Rushbrook & Rathbone, sees the sector's expansion as broadly positive, though not without risk.
"The continued growth in the number of businesses operating within the property management sector is a positive sign, but it inevitably increases competition and places pressure on revenue," she said. "What we are seeing is a more crowded and fragmented market, where not all operators are delivering the same level of service, expertise or compliance."
The incoming legislation looks set to sharpen those distinctions further. "The introduction of the latest phase of the Renters' Rights Act is also likely to accelerate this trend," Rushbrook explained.
"As the sector becomes more compliance-driven, landlords are facing increasing demands when it comes to managing tenancies, maintaining properties and ensuring they meet evolving standards. For many, this will make professional management less of a convenience and more of a necessity."
Despite the shifting environment, she argues the core principles of good property management have not changed. "Over the past three decades, the sector has evolved significantly, particularly in response to changing regulations and rising client expectations. However, the fundamentals of good property management have remained the same," she said.
For established firms, that means balancing experience with the ability to adapt. "For established operators, the challenge is to balance that long-standing experience with the need to continually adapt, whether that's through improved systems, stronger compliance processes or a more structured approach to managing assets," Rushbrook added.
"In an environment where margins are tightening, and expectations are rising, experience, consistency, and professionalism are becoming increasingly important differentiators."
