The latest insight from property management specialist Rushbrook & Rathbone has found that whilst the UK property management sector continues to expand, increasing competition is exerting pressure on revenue per firm.
With further changes to the rental landscape expected via the Renters’ Rights Act, rising demand for professional management services, combined with increased competition and tightening margins, could place greater pressure on standards across the sector.
Rushbrook & Rathbone analysed the number of operational businesses within the UK property management sector alongside estimated revenue per business, tracking how both have changed over time.
The insight shows that the number of property management businesses increased by 5.4% in 2025, following a similar 5.1% rise in 2024, underscoring continued growth in the sector.
However, this increase in competition has been accompanied by a decline in revenue per firm. Estimated revenue per business fell by 1.3% year on year in 2025, following a larger 6.5% reduction the previous year.
Looking over the longer term, the data shows that estimated revenue per business has fallen by 23% over the past decade, reflecting a more crowded and increasingly competitive marketplace.
At the same time, the evolving regulatory landscape is expected to place further operational pressure on landlords, particularly with the introduction of the latest phase of the Renters’ Rights Act.
As requirements around compliance, tenant management, rent collection and property standards become more demanding, many landlords are likely to rely more heavily on professional management services.
This shift suggests that whilst demand for property management services remains strong, a growing number of operators are competing for a share of the same market, placing pressure on margins and making it more challenging to maintain consistent standards across the sector.
Sarah Rushbrook, Founder of Rushbrook & Rathbone, said:“The continued growth in the number of businesses operating within the property management sector is a positive sign, but it inevitably increases competition and places pressure on revenue.
What we are seeing is a more crowded and fragmented market, where not all operators are delivering the same level of service, expertise or compliance.
The introduction of the latest phase of the Renters’ Rights Act is also likely to accelerate this trend. As the sector becomes more compliance-driven, landlords are facing increasing demands when it comes to managing tenancies, maintaining properties and ensuring they meet evolving standards.
For many, this will make professional management less of a convenience and more of a necessity.
Over the past three decades, the sector has evolved significantly, particularly in response to changing regulation and rising client expectations. However, the fundamentals of good property management have remained the same.
For established operators, the challenge is to balance that long-standing experience with the need to continually adapt, whether that’s through improved systems, stronger compliance processes or a more structured approach to managing assets.
In an environment where margins are tightening and expectations are rising, experience, consistency and professionalism are becoming increasingly important differentiators.”
Leave a Comment