The lettings market in mid-2026 is defined by a simple imbalance: more people chasing fewer homes. The latest RICS residential survey recorded tenant demand at a net balance of +16%, the strongest reading since May 2025. At the same time, landlord instructions sit at -18%, meaning significantly more agents are reporting a fall in new rental stock than a rise. That gap between demand and supply is the main engine driving rents upward, and there is little sign of it closing soon.
Where Rents Stand Right Now
Average UK monthly private rents in June 2026 range from £1,355 for flats and maisonettes to £1,577 for detached properties. Households needing four or more bedrooms are paying an average of £2,061 per month. These figures vary considerably by region, with London and the South East sitting well above the national average, but the upward trend is visible across most of the country. For tenants already stretched on affordability, these numbers represent a real and ongoing pressure.
Why Landlord Supply Is Falling
A number of landlords have decided to sell up or move their capital elsewhere, and the reasons are layered. The Renters' Rights Act has introduced significant changes to tenancy law, including the abolition of Section 21 no-fault evictions and stronger grounds for tenant disputes. Some landlords, particularly smaller portfolio holders, have concluded the regulatory environment no longer suits them.
There are also cost pressures building on two other fronts. Upcoming EPC upgrade requirements mean many landlords face capital expenditure to bring older properties up to the minimum energy efficiency standard, and not all are willing to make that investment. On top of that, Making Tax Digital is adding administrative demands for landlords who were previously managing their affairs through simple self-assessment returns.
Reports are also emerging of investors switching from residential to commercial property to reduce their exposure to residential tenancy regulation. Whether that trend accelerates will depend partly on how the Renters' Rights Act beds in over the coming months.
The Opportunity for Landlords Who Stay
For landlords who remain in the market, the conditions are genuinely favourable. Strong demand means good properties are letting quickly. Void periods, which erode annual yields, are shorter than they have been for years in many areas. Tenants, aware of the competition, are often prepared to commit promptly when they find a home that suits them.
Properties that stand out tend to share a few characteristics. Energy efficiency matters more than it used to: tenants are paying close attention to EPC ratings because energy bills form a meaningful part of their monthly outgoings. A well-insulated property with a decent rating can be a genuine selling point. Well-maintained homes with modern kitchens and bathrooms also let faster, and typically attract tenants who stay longer.
If you are a landlord weighing up whether the sums still work, speak to our lettings team about realistic rental valuations in your area. The numbers may be more positive than you expect, particularly if your property is in good condition or already meets the likely new EPC threshold.
What This Means for Tenants
The affordability squeeze is real, and it would be misleading to suggest otherwise. Rents are unlikely to fall significantly in the near term while supply remains constrained. That means budgeting carefully and being clear about your priorities before you start searching.
The Renters' Rights Act does bring meaningful new protections worth understanding. The removal of no-fault evictions gives you greater security of tenure: a landlord cannot simply ask you to leave without a legitimate ground. Bidding wars on rental properties have also been restricted under the Act, which should reduce the pressure of being drawn into informal rent auctions. If you want a full picture of your rights under the new legislation, it is worth reading the government guidance or speaking to a local adviser.
Given competition for well-priced properties, acting quickly remains important. If you find a property that fits your needs and budget, do not assume it will still be available in a few days. Register with agents so you are alerted to new listings as soon as they come to market.
A Practical Takeaway
The lettings market in 2026 rewards preparation on both sides. Landlords with compliant, energy-efficient properties in good repair are well placed to benefit from sustained demand and low voids. Tenants who know their budget, understand their rights under the new legislation, and move decisively when the right home appears will give themselves the best chance of securing it. If you are buying, selling, letting, or renting in our area, our team is happy to talk through what the current market looks like locally.
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