Property managers set for Renters’ Rights Act boost

The introduction of the Renters’ Rights Act is set to increase demand for professional property management services across the UK. As landlords face more stringent compliance requirements, the property management sector continues to expand, reflecting the growing complexity of the private rented sector.

Growth in the Property Management Sector

Recent analysis by Rushbrook & Rathbone highlights a 2.8% rise in the number of property management businesses operating in the UK over the past year. The total now stands at approximately 20,105 firms, up from 19,550 the previous year. England dominates the market, accounting for 91.1% of these businesses, with London remaining the largest regional hub, hosting 6,200 firms—nearly 31% of the total nationwide.

Increasing Regulatory Pressures on Landlords

Roma Sharma, managing director at Rushbrook & Rathbone, emphasises that the sector’s growth is a positive indicator of the increasing demands placed on landlords. She explains, “As landlords face greater regulatory requirements, more compliance obligations and increasing pressure around tenant management, maintenance and administration, many are recognising the value of professional management support.”

Sharma also notes that despite growth, the sector remains highly fragmented, with most businesses operating on a small scale. She adds, “The introduction of the Renters’ Rights Act is only likely to accelerate this trend, particularly as compliance expectations continue to evolve.”

Regional Trends and Business Size

Outside London, the South East is the second-largest market, home to 13.8% of property management firms, followed by the North West at 9.7% and the East of England at 9.1%. The East Midlands experienced the fastest growth in operational businesses over the last year, with a 7.9% increase. Wales and the West Midlands also saw notable rises of 5.5% and 4.0% respectively, while London’s growth rate was 3.7%.

Most property management companies are small, with 80.9% employing between zero and four staff members. Only 0.9% of firms have 50 or more employees. This pattern is mirrored in turnover figures, with over 72% of businesses reporting annual revenues below £250,000.

What this means for landlords

The expanding property management sector offers landlords greater access to professional services capable of navigating the increasingly complex regulatory landscape. With the Renters’ Rights Act introducing more rigorous compliance duties, landlords may find it beneficial to engage experienced property managers to ensure adherence to legal obligations and effective tenant management.

Given the predominance of small-scale firms, landlords can expect a range of service providers, from boutique operations to larger companies, allowing for tailored management solutions suited to different portfolio sizes and needs.

Source: Based on reporting from Property118

TLA Training Academy

The Landlord Association has launched its new Training Academy for UK landlords, providing structured guidance, compliance education, and practical knowledge to support landlords at every stage. Members can now complete the programme and become TLA Certified Landlords at no additional cost as part of their membership.

Landlords can explore the Academy here: https://landlordassociation.org.uk/tla-academy/

Those looking to join and access the full training and certification can register here: https://landlordassociation.org.uk/landlord-association-membership-uk/

TLA update

The Landlord Association is currently onboarding new service providers into its Trusted Partner Hub, a new initiative designed to support landlords, tenants, letting agents, and property managers with vetted, high-quality services. As one of the fastest growing landlord associations in the UK, TLA offers partners direct access to an engaged and active member base at the point of need. Service providers across legal, maintenance, insurance, finance, mortgages, tenant screening, and property services can register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/