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 is expanding to meet the growing complexity of operating within the private rented sector.
Growth in the Property Management Sector
Recent analysis by Rushbrook & Rathbone reveals that the number of property management businesses in the UK has risen by 2.8% over the past year. There are now approximately 20,105 operational property management firms, up from 19,550 the previous year. England accounts for the vast majority of these businesses, representing 91.1% of the total, with London alone hosting 6,200 firms—nearly a third of the UK’s property management market.
Increasing Regulatory Pressure on Landlords
Roma Sharma, managing director of Rushbrook & Rathbone, highlights that the sector’s growth reflects the increasing regulatory and administrative demands placed on landlords. “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,” she said. Sharma also noted that despite growth, the sector remains highly fragmented, with most firms operating on a small scale.
She further emphasised that the introduction of the Renters’ Rights Act will likely accelerate this trend as compliance expectations continue to evolve, making professional management services even more essential for landlords.
Regional Trends and Business Size
Outside London, the South East is the second largest regional market, accounting for 13.8% of property management businesses, followed by the North West at 9.7% and the East of England at 9.1%. The East Midlands experienced the fastest annual growth in operational firms at 7.9%, with Wales, the West Midlands, and London also seeing increases of 5.5%, 4.0%, and 3.7% respectively.
The majority of property management businesses are small-scale operations. Around 80.9% employ between zero and four staff members, while only 0.9% have 50 or more employees. This small size is reflected in turnover figures, with over 72% of firms reporting annual revenues below £250,000.
What this means for landlords
Landlords should prepare for heightened compliance demands as the Renters’ Rights Act takes effect. The growing complexity of regulatory requirements means that relying on professional property management services will become increasingly advantageous. Engaging with experienced managers can help landlords navigate tenant management, maintenance obligations, and administrative duties more effectively, reducing the risk of non-compliance and improving tenant relations.
Given the fragmented nature of the sector, landlords may find a wide range of service providers, from small local firms to larger operations, allowing them to select management solutions tailored to their portfolio size and specific 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/
Source: www.property118.com
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