Despite the UK property management sector continuing to expand, increasing competition is placing downward pressure on revenue per firm.
Coupled with rising demand for professional management services prompted by the Renters’ Rights Act, the squeeze on margins could place greater pressure on standards across the sector, according to property management solutions specialists, Rushbrook & Rathbone.
The company analysed the number of operational businesses within the UK property management sector alongside estimated revenue per business, tracking how both have changed over time. It showed a 5.4% increase in the number of property management businesses in 2025, following a similar 5.1% rise in 2024.
However, the data showed that estimated revenue per business fell by 1.3% year on year in 2025, following a larger 6.5% reduction the previous year. It estimates the figure has fallen by 23% over the last decade.
A crowded and increasingly competitive marketplace
The figures reflect a more crowded and increasingly competitive marketplace, the company said. But the introduction of the latest phase of the Renters’ Rights Act will increase pressure on margins as landlords increasingly turn to experts for professional management services.
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.
“We are seeing 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.”