Property management costs have risen sharply across England over the past decade, with the Midlands recording the fastest growth, according to new research from Rushbrook & Rathbone.

The analysis estimates that annual property management costs in the Midlands have increased by 53.9% since 2016, outpacing both the North and South.

The figures are based on average rental values published by the Office for National Statistics and assume a typical management fee of 10% plus VAT. As rents have climbed over the past decade, estimated management costs have risen in parallel.

While the Midlands recorded the strongest percentage growth, landlords in the South continue to face the highest overall costs.

The research suggests average annual property management fees across southern England, including London, now stand at £2,168 per property, compared with £1,353 in the Midlands and £1,237 in the North.

East Midlands leads decade of growth

The East Midlands recorded the highest increase of any English region, with estimated management costs rising by 57% over the past decade. The West Midlands followed closely, with growth of 50.9%.

In the North of England, costs remain lower overall but have still risen strongly in line with rental growth. The North West saw the biggest increase at 56.9%, followed by Yorkshire and the Humber at 45.1%, and the North East at 43.7%.

London remains the most expensive region for landlords using fully managed services, with average annual costs reaching £3,303 in 2026, although growth in the capital was the lowest of any region at 37%.

Across the South East, average annual management costs are now estimated at £2,042, while the South West stands at around £1,777.

Rising rents driving costs, not fee inflation

Commenting on the findings, Rushbrook & Rathbone managing director Roma Sharma, says the regional differences reflect both rental growth and changing market conditions.

Sharma adds that property management has become more complex over time, with landlords facing increasing compliance obligations and regulatory change linked to the wider private rented sector reforms.

“Landlords are operating in an increasingly regulated environment, with greater compliance responsibilities, higher tenant expectations, and more complex operational requirements than ever before” she adds.

Costs rising because rents are rising

The research highlights that much of the increase in property management costs is driven by rising rents rather than changes to fee structures, with most agents charging a percentage of monthly rental income.

According to the report, average UK rents have increased significantly since 2016, which has directly pushed up management fees even where percentage charges have remained broadly stable.

The findings underline how strongly the economics of the private rented sector have shifted over the past decade, particularly in regions such as the Midlands, where rental growth has been more pronounced from a lower starting base.

Further details on regional rental growth trends is available via the Office for National Statistics.

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