There are now an estimated 20,105 property management businesses operating across the UK, up from 19,550 the previous year.
England – where the new Renters Rights Act applies – accounts for the vast majority of firms at 91.1% of the UK total.
London remains the dominant regional hub, home to 6,200 businesses and accounting for 30.8% of all firms operating across the sector.
Outside of the capital, the South East ranks second, accounting for 13.8% of all businesses, followed by the North West at 9.7% and the East of England at 9.1%.
Whilst London remains the sector’s dominant force, some of the strongest annual growth has been seen elsewhere. The East Midlands recorded the largest annual increase in the number of operational businesses at 7.9%.
This is followed by Wales at 5.5% and the West Midlands at 4.0%.
However, the data also highlights just how fragmented the sector remains.
An estimated 80.9% of all property management businesses employ between zero and four members of staff, whilst just 0.9% employ 50 people or more.
The turnover profile of the sector paints a similar picture.
More than 72% of firms report annual turnover below £250,000, highlighting the dominance of smaller operators within the market.
The research is from Rushbrook & Rathbone.
It says whilst the continued growth of the sector reflects rising demand for professional management services – particularly as landlords face increasing legislative and operational pressures – maintaining service quality and compliance standards across a rapidly expanding market will become increasingly important.