Rushbrook & Rathbone has reported that growth in the UK property management sector is continuing, but more competition is reducing revenue per firm.
The company’s latest insight showed a 5.4% rise in the number of property management businesses in 2025, following a 5.1% increase in 2024.
At the same time, estimated revenue per business dropped by 1.3% in 2025 after a larger fall of 6.5% in 2024.
Over the past 10 years, revenue per business fell by 23%.
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.”
Rushbrook added: “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.”
She said: “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.”
