Average incomes rose by £14,000 in the last quarter alone, according to the latest Landlord Trends research from Pegasus Insight.
Strong tenant demand, long tenancy lengths and high levels of tenant satisfaction are behind the uplift, said the firm.
After dipping briefly in the final quarter of last year, landlord incomes rebounded sharply during the three months to March and are now more than one-fifth higher than they were 12 months ago.
Tenant satisfaction
The increase in rental income comes alongside evidence from Pegasus Insight’s Tenant Trends research that tenants remain settled and generally positive about their renting experience.
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The average tenant has rented for around eight years and has spent more than five years in their current property.
Two-thirds intend to remain in their current home when their tenancy agreement ends, while more than two-thirds described their recent rental experience as positive. Overall, 76% said they are satisfied with the service provided by their landlord or letting agent.
According to Pegasus Insight, the findings suggest that landlord income growth is being supported not just by rent increases, but also by strong occupancy levels, low tenant turnover and sustained demand for rental accommodation.
Alongside the rise in rental income, the average landlord portfolio is now valued at £1.69m.
Mark Long, founder and managing director of Pegasus Insight, said: “Much of the debate around the private rented sector 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.
“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.”
