Rental market trends & forecasts: What’s ahead for landlords?
The rental market rarely stands still, and the year ahead looks set to be no different. After a busy end to 2025, the market has entered the new year with steady demand, cautious optimism, and a few shifts landlords should keep an eye on.
Demand for rental homes remains strong, largely driven by affordability challenges in the sales market. Many prospective buyers are choosing to rent for longer, either to save larger deposits or to wait for more favourable mortgage conditions. This has helped keep competition high for well-located, well-presented rental properties, particularly family homes and properties close to transport links.
However, tenants are becoming more value-conscious. While rent levels have risen over recent years, renters are now paying closer attention to what they are getting for their money. Properties that are clean, energy-efficient, and well maintained are attracting the most interest, while tired or poorly presented homes may take longer to let. For landlords, this means presentation and upkeep matter more than ever.
According to Zoolpa, average UK rents rose by around 2.2% in 2025 — the slowest annual increase in four years — with the typical new let around £1,320 per month by the end of the year. Demand dipped compared with previous years, and rental supply ticked up by roughly 15%, meaning more choice for tenants and slightly longer times to let (about 17 days on average)
So what does this mean for 2026?
Most forecasts point to steady, moderate rental growth rather than sharp increases. Zoolpa expects rents to continue rising but in a more measured way, with around 2.5% growth forecast across the UK in 2026. This suggests landlords can still expect reliable income growth without the volatility of recent years.
Another trend to watch is the increasing importance of energy efficiency. Rising utility costs mean tenants are asking more questions about EPC ratings and running costs. Even modest improvements can make a property more appealing and help future-proof it against upcoming regulations.
Overall, the outlook for landlords is positive, but success will increasingly favour those who stay informed and adaptable. Understanding local market conditions, investing wisely in properties, and maintaining strong relationships with tenants will be key themes in the year ahead.
YourRepair’s sister company, Hometree, can assist with energy-efficient upgrades such as installing efficient boilers, heat pumps, solar panels, and underfloor heating. Regular maintenance of heating systems can also help achieve the required EPC rating.
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