Despite ongoing regulatory changes and repeated reports of landlords leaving the buy-to-let sector, new research suggests the private rental market remains in a strong position.
According to the latest Landlord Trends survey from Pegasus Insight, average annual rental income reached £89,000 in the first quarter of 2026. This is a significant increase on both the previous quarter and the same period last year.
The findings suggest this growth is not simply being driven by rent increases, but also by strong tenant demand, high occupancy levels and tenants staying in their homes for longer.
Separate tenant research found that the average renter has lived in rented accommodation for around eight years, with more than five years spent in their current property. Two-thirds of tenants said they intended to remain in their home when their tenancy ends, while 76% reported being satisfied with the service provided by their landlord or letting agent.
For landlords, long-term tenants can provide stable and predictable income, while also reducing the costs and disruption associated with regular changeovers.
While affordability, taxation and compliance remain important challenges, the research is a useful reminder that demand for good quality rental homes remains strong. For landlords who continue to manage their properties well and support positive tenant relationships, the fundamentals of the rental market remain encouraging.
