Despite continued regulatory changes and reports of landlords leaving the buy-to-let sector, rental incomes increased sharply during the first quarter of 2026, according to new research from Pegasus Insight.

Its latest Landlord Trends survey found that average annual rental income reached £89,000 in Q1, up £14,000 on the previous quarter and £16,000 higher than a year earlier. The increase follows a dip in Q4 2025 and leaves average landlord income more than 20% higher than 12 months ago.

The research suggests income growth is being supported by strong tenant demand, high occupancy rates and longer tenancy lengths rather than rental increases alone.

Separate Tenant Trends research by Pegasus Insight found that the average renter has lived in rented accommodation for around eight years and has spent more than five years in their current property. Two-thirds 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.

The report also found that the average landlord portfolio is now valued at £1.69m, reflecting continued growth in property values across the private rented sector.

Mark Long, founder and managing director of Pegasus Insight, said: “Much of the debate around the PRS 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.”