Landlords’ average annual income has risen by £14,000 a year since last quarter to a record £89,000, analysis by Pegasus Insight has found.
The research was based on 631 interviews with members of the National Residential Landlords Association (NRLA).
This could mean respondents are more likely to be professional or portfolio landlords and less likely to be accidental landlords than the general population, particularly as it also found the average landlord portfolio is now worth £1.69m.
The latest landlord trends report found that average rental income was £16,000 higher than a year ago.
At the same time, Pegasus Insight’s tenant survey indicates the average renter has been in their current property for more than five years and two-thirds plan to stay beyond the end of their original term.
It found 76% say they are satisfied with the service provided by their landlord or letting agent.
Pegasus founder and managing director Mark Long says: “Much of the debate around the private rental sector 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.”
