Nearly nine in 10 landlords have reported making a profit, according to research from Paragon Bank.
This percentage of 87%, covering the second quarter of 2025, is just one point off a five year high.
The amount of landlords in profit increased from the first quarter by 3%.
The research, in a survey of 794 landlords by Pegasus Insights on behalf of Paragon, follows a 10% increase in the two years since the same period in 2023.
With more landlords in profit, the amount who made a loss declined from 7% in the first quarter to 5% in the second.
The proportion of landlords breaking even remained the same at 8%.
Pegasus Insights also sought insights on what issues had impacted landlords’ profitability.
Arrears in the past 12 months was the joint top issue alongside property damage, both issues for 79% of landlords.
The need to evict a tenant was close behind at 78%.
“It’s interesting to see that the data suggests there may be a link between profitability and harmonious relationships between responsible landlords and respectful tenants,” said Louisa Sedgwick, managing director of mortgages at Paragon Bank (pictured above).
“This shows that it’s not always plain sailing for landlords.
“We know that they work hard and with the research also showing that, on average, they spend more than a fifth of their gross rental income running and maintaining their properties, the profits they make result from the time and money they put into providing good quality homes for renters.”
