Midlands sees largest property management fees increase
The latest research from Rushbrook & Rathbone has found that property management fees in the Midlands have increased by an estimated 53.9% over the past decade, the fastest rate of growth across England’s regions, highlighting a widening divide in costs between the North, Midlands, and South.
The research analysed average rental values across England’s regions in 2016 and 2026, applying an average 10% (plus VAT) property management fee to estimate annual management costs*. The analysis then compared regional changes over the 10-year period to assess how property management fees have evolved across the North, Midlands, and South.
According to the findings, while the Midlands recorded the strongest growth in percentage terms, the South remains the most expensive region for property management on an absolute basis.
The estimated average annual fee across the South, including London, now stands at £2,168, compared with £1,353 in the Midlands, and £1,237 in the North.
London continues to sit at the top of the market, with the average annual property management fee reaching £3,303 in 2026. This marks a 37% increase over the past decade, the lowest rate of growth across all regions analysed, but maintains a significant premium over the rest of the country.
Across the wider South East, average annual property management fees now stand at £2,042, following a 44.8% increase since 2016. The South West has seen a 52.2% rise over the same period, the largest of all southern regions, with fees now averaging £1,777 per year.
In the North of England, property management fees remain the lowest overall, but have still recorded strong growth over the past decade. The average annual fee across the region now stands at £1,237, up 48.2% since 2016.
Within the North, the North West recorded the highest growth at 56.9%, followed by Yorkshire and the Humber at 45.1%, and the North East at 43.7%.
However, it’s the East Midlands that has seen the nation’s largest 10-year increase of 57%, while West Midlands fees have increased by 50.9%.
The findings highlight a clear and widening regional divide in property management costs, with the Midlands recording the fastest growth rates, the South maintaining the highest absolute costs, and the North continuing to represent the lowest-cost and best value region for landlords.
Roma Sharma, Managing Director of Rushbrook & Rathbone, commented:
“The regional differences highlighted by this research reflect the diverse nature of England’s rental market and the varying rental values that property managers are responsible for overseeing.
While the South continues to command the highest management fees in absolute terms, it’s notable that the Midlands has seen the fastest rate of growth over the last decade, reflecting the strength of rental demand and rental value growth across the region.
Property management today is also very different from what it was ten years ago. Landlords are operating in an increasingly regulated environment, with greater compliance responsibilities, higher tenant expectations, and more complex operational requirements than ever before.
As a result, professional property management plays an increasingly important role in protecting landlords’ investments, ensuring regulatory compliance and delivering a positive experience for tenants.
The data demonstrates the continued growth and maturity of the private rental sector across all parts of England. While regional differences remain, the common theme is a growing recognition of the value that professional management brings to landlords and tenants alike.”
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