The UK property management sector is expected to grow to almost £38bn in revenue in 2026, according to new research. The increase reflects continued demand from landlords for professional management as regulatory and compliance requirements in the rental market become more complex.
Analysis by Rushbrook & Rathbone shows the sector recovered in 2025 after a slight contraction the previous year. Market revenue fell by 1.7% in 2024 to £36.25bn but rose by 4.1% in 2025 to £37.7bn. Over the past decade, the size of the market has increased by around 26%.
Further growth is forecast for 2026, with revenue expected to rise by another 0.7%, bringing the sector’s value close to £38bn.
The expansion of the sector reflects the growing operational demands involved in managing rental property in the UK. Landlords are facing increasing responsibilities related to compliance, property maintenance, tenant management and financial administration.
Rushbrook & Rathbone says three main factors are driving greater use of professional management services: time pressures on landlords, increasing regulatory requirements and the challenges of managing larger portfolios.
Many landlords manage rental properties alongside full-time jobs or other business interests, limiting the time available to oversee tenant issues, maintenance and administration. Property management firms typically handle these day-to-day tasks.
At the same time, the regulatory framework for the private rented sector has expanded. Landlords must meet requirements covering areas such as safety certification, deposit protection, licensing and tenant rights legislation.
As portfolios grow, the administrative demands also increase. Coordinating contractors, tracking compliance deadlines, managing tenant communication and maintaining financial records all require more structured systems, which management companies are set up to provide.
Roma Sharma, managing director of Rushbrook & Rathbone, commented: “Managing rental property today involves far more than collecting rent and arranging the occasional repair.
“The sector has become increasingly operational and compliance driven, with landlords needing to navigate complex legislation, coordinate maintenance and contractors, maintain accurate records, and respond to tenant needs often around the clock.
“As a result, professional management is increasingly being viewed not as an optional layer, but as an important part of protecting both the asset itself and the landlord’s time.
“What we are seeing is a gradual shift in how property management is perceived, particularly among portfolio landlords and investors who recognise the value of having structured systems, specialist expertise and reliable contractor networks in place to support the long-term performance of their assets.”
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