Q1 2026<\/h2>\n\n<\/p>\nRents stand still\u00a0<\/span>at start of the year\u00a0<\/span>for the first time since 2017<\/span><\/span>\u00a0<\/span><\/h2>\n\n- The average advertised rent\u00a0of homes\u00a0outside of London\u00a0remains\u00a0flat\u00a0(0.0%)\u00a0at\u00a0\u00a31,370\u00a0per calendar\u00a0month, the first time since 2017 that there has been\u00a0no\u00a0rise\u00a0from Q4 to Q1:<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
\n- \n
\n- Average advertised rents in London rose by 0.7% this quarter to \u00a32,736pcm<\/span>\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
\n- \n
\n- Average rents outside\u00a0of\u00a0London are still 1.6% higher than this time last year, though this is the lowest this figure has been since 2018<\/span>\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
\n- No major signs of\u00a0changes to market dynamics ahead of the Renter\u2019s Rights Act coming into effect from 1<\/span>st<\/span>\u00a0May, as\u00a0tenant demand and supply\u00a0balance\u00a0continues to improve:<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
\n- \n
\n- The\u00a0total\u00a0number of\u00a0available\u00a0homes\u00a0to rent\u00a0is\u00a0now\u00a03% higher than a year ago,\u00a0and at\u00a0the highest level for this time of year since 2021, but\u00a0there\u2019s\u00a0been no surge in newly listed homes for rent<\/span>\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
\n- \n
\n- Latest data\u00a0from UK Finance shows a small uptick in new buy-to-let loans\u00a0in January,\u00a0and an 18% uplift in\u00a0buy-to-let\u00a0remortgages year-on-year, though this was before recent rate rises<\/span>\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
\n- \n
\n- The\u00a0average\u00a0rental\u00a0home now\u00a0receives\u00a08 enquiries, down from 11 a year ago and\u00a029\u00a0at the\u00a02022\u00a0peak, though\u00a0this is\u00a0still higher than\u00a0the average of\u00a05\u00a0seen\u00a0pre-pandemic<\/span>\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
\n- \n
\n- More than a quarter (26%)\u00a0of rental listings saw a price reduction, the highest proportion\u00a0at this time of year\u00a0since Rightmove started recording this metric in 2012<\/span>\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
\n- Rightmove\u2019s daily buy-to-let mortgage tracker\u00a0highlights\u00a0how\u00a0rates have increased since the start of the\u00a0war in Iran, increasing cost pressures for landlord\u00a0investors<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
What\u2019s\u00a0happening with rental prices?<\/span><\/b>\u00a0<\/span><\/p>\nThe average advertised rent of homes coming onto the market outside of London remained flat (0.0%) in Q1 2026, holding at \u00a31,370 per calendar month. This is the first\u00a0time since 2017 that\u00a0rents have not increased at the start of the year\u00a0from Q4 into Q1.\u00a0<\/span>\u00a0<\/span><\/p>\nWhile rents have levelled off\u00a0quarter<\/span>\u2011on<\/span>\u2011quarter, average advertised rents outside of London are still 1.6% higher than this time last year, though this\u00a0is the lowest this figure has been since 2018.<\/span>\u00a0<\/span><\/p>\nTwo key drivers are\u00a0likely influencing\u00a0a more muted start to the year for rent increases.\u00a0With\u00a0rental market supply and demand at its most balanced since 2020, lower tenant demand\u00a0and a greater choice of homes\u00a0is reducing competition for rental homes and upwards pressure on rents.<\/span>\u00a0<\/span><\/p>\nIn addition,\u00a0with wage growth\u00a0slowing\u00a0and inflation still above the Bank of England\u2019s target 2%,\u00a0affordability pressures\u00a0remain\u00a0for tenants, with more likely reaching a ceiling of what they can pay in their area, particularly in higher-priced areas such as\u00a0the capital.<\/span>\u00a0<\/span><\/p>\nIn London, average advertised rents rose by 0.7% this quarter to \u00a32,736 per calendar month, though rents are still lower than Q3 2025\u2019s record.\u00a0<\/span>\u00a0<\/span><\/p>\nWhat\u2019s\u00a0happening with\u00a0rental\u00a0market activity?<\/span><\/b>\u00a0<\/span><\/p>\nThere are currently no<\/span>\u00a0<\/span><\/b>major signs\u00a0on a national scale\u00a0of changes to market dynamics ahead of the Renter\u2019s Rights Act coming into effect from 1<\/span>st<\/span>\u00a0May.<\/span>\u00a0<\/span><\/p>\nThe number of\u00a0available homes\u00a0to rent is now 3% higher than a year ago,\u00a0with supply at\u00a0its highest level for this time of year since 2021. While this marks a meaningful improvement compared with recent years, overall supply\u00a0remains\u00a0below\u00a0longer<\/span>\u2011term\u00a0norms.<\/span>\u00a0<\/span><\/p>\nHowever,\u00a0there\u2019s\u00a0been no surge in newly listed homes for rent ahead of 1<\/span>st<\/span>\u00a0May.\u00a0In fact, while the total number of\u00a0available homes\u00a0for rent is\u00a0higher than recent years, the\u00a0number of newly listed rental properties\u00a0coming onto the market in the full month of March\u00a0is\u00a0actually 6%\u00a0lower than at\u00a0the\u00a0same point\u00a0last year.\u00a0<\/span>\u00a0<\/span><\/p>\nAnother\u00a0positive indicator\u00a0for rental supply,\u00a0is that\u00a0data from UK Finance shows a small uptick in\u00a0the number of\u00a0new buy-to-let loans at the start of the year, and an 18% uplift in\u00a0volume of\u00a0buy-to-let remortgages year-on-year. In total, the number of buy-to-let loans was 14% higher at the start of 2026 compared with the start of 2025. However, this data only covers January, before significant recent rate rises.<\/span>\u00a0<\/span><\/p>\nThe balance between tenant demand and supply of rental homes continues to improve.\u00a0The average rental home now receives 8 enquiries, down from 11 a year ago and 29 at the 2022 peak, though still higher than 5 pre-pandemic.<\/span>\u00a0<\/span><\/p>\nAgents report landlords taking a more measured,\u00a0longer<\/span>\u2011term\u00a0approach, focusing on securing reliable tenants and ensuring properties\u00a0remain\u00a0competitively priced in a less pressured market.<\/span>\u00a0<\/span><\/p>\nWhat\u2019s\u00a0happening with buy-to-let mortgage rates?<\/span><\/b>\u00a0<\/span><\/p>\nRightmove\u2019s daily\u00a0buy<\/span>\u2011to<\/span>\u2011let\u00a0mortgage tracker shows\u00a0how rates have increased since the start of the war in Iran, increasing cost pressures for landlord investors. While\u00a0it\u2019s\u00a0early days and\u00a0there\u2019s\u00a0no\u00a0clear signs\u00a0as yet, higher mortgage costs could\u00a0impact\u00a0new investment in the future.<\/span>\u00a0<\/span><\/p>\nThe average\u00a0two<\/span>\u2011year\u00a0buy<\/span>\u2011to<\/span>\u2011let\u00a0mortgage rate for a landlord\u00a0purchasing\u00a0a rental property\u00a0with a 25% deposit is now 5.79%, up from 4.86% before the war\u00a0in Iran\u00a0started.<\/span>\u00a0<\/span><\/p>\nRightmove\u2019s\u00a0property expert Colleen Babcock says<\/span><\/b>:\u00a0<\/span>\u201c<\/span><\/i>Rents holding steady this quarter reflects how affordability\u00a0remains\u00a0stretched, but also how supply and demand\u00a0is more balanced. With more homes available to rent and less competition between tenants, landlords are\u00a0needing\u00a0to\u00a0position rents\u00a0correctly for the current market\u00a0to secure a tenant.<\/span><\/i>\u00a0<\/span><\/p>\n\u201c<\/span>As market conditions rebalance, homes are taking longer to let.\u00a0The market is more price sensitive, with landlords needing to be realistic from the outset to secure a tenant and reduce the risk of void periods. Around 26% of rental listings are now reduced in price while advertised, the highest proportion recorded since Rightmove began tracking this metric in 2012.<\/span><\/i>\u00a0<\/span><\/p>\n\u201cAhead of the Renters\u2019 Rights Act coming into force, the data\u00a0doesn\u2019t\u00a0suggest a single or immediate reaction from landlords. Instead, behaviour appears more cautious and considered, with many\u00a0focusing on longer-term\u00a0tenancies,\u00a0pricing\u00a0and avoiding void periods in a more balanced market.<\/span><\/i>\u00a0<\/span><\/p>\n\u201cIt\u2019s still early days, but the most immediate shift due to the war in Iran has been some significant increases to borrowing costs for landlords, which may filter through to the\u00a0market\u00a0at a later stage.\u201d<\/span><\/i>\u00a0<\/span><\/p>\nAdam Jennings, Head of Residential at\u00a0Chestertons, says:\u00a0<\/span><\/i><\/b>\u201cAcross Q1,\u00a0we\u2019ve\u00a0seen a clear pick-up in lettings activity, particularly towards the end of March, with a noticeable increase in viewings and agreed lets compared to earlier in the quarter. Well-presented, correctly priced properties are continuing to let quickly, especially in areas where supply\u00a0remains\u00a0constrained.<\/span><\/i>\u00a0<\/span><\/p>\n\u201cWith the Renters\u2019 Rights Act coming into force from 1 May, there has understandably been some uncertainty among landlords. However, the strength of demand we saw in late March has provided reassurance, with many landlords continuing to see competitive levels of interest and strong rental values.<\/span><\/i>\u00a0<\/span><\/p>\n\u201cIn parts of the prime market,\u00a0we\u2019re\u00a0also seeing demand supported by international relocations, including some movement from the Middle East, which is adding to overall activity. Overall, while the legislative backdrop is evolving, the lettings market has\u00a0remained\u00a0active, with momentum building into the end of the quarter.\u201d\u202f<\/span><\/i><\/p>\n
Rents stand still\u00a0<\/span>at start of the year\u00a0<\/span>for the first time since 2017<\/span><\/span>\u00a0<\/span><\/h2>\n\n- The average advertised rent\u00a0of homes\u00a0outside of London\u00a0remains\u00a0flat\u00a0(0.0%)\u00a0at\u00a0\u00a31,370\u00a0per calendar\u00a0month, the first time since 2017 that there has been\u00a0no\u00a0rise\u00a0from Q4 to Q1:<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
\n- \n
\n- Average advertised rents in London rose by 0.7% this quarter to \u00a32,736pcm<\/span>\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
\n- \n
\n- Average rents outside\u00a0of\u00a0London are still 1.6% higher than this time last year, though this is the lowest this figure has been since 2018<\/span>\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
\n- No major signs of\u00a0changes to market dynamics ahead of the Renter\u2019s Rights Act coming into effect from 1<\/span>st<\/span>\u00a0May, as\u00a0tenant demand and supply\u00a0balance\u00a0continues to improve:<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
\n- \n
\n- The\u00a0total\u00a0number of\u00a0available\u00a0homes\u00a0to rent\u00a0is\u00a0now\u00a03% higher than a year ago,\u00a0and at\u00a0the highest level for this time of year since 2021, but\u00a0there\u2019s\u00a0been no surge in newly listed homes for rent<\/span>\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
\n- \n
\n- Latest data\u00a0from UK Finance shows a small uptick in new buy-to-let loans\u00a0in January,\u00a0and an 18% uplift in\u00a0buy-to-let\u00a0remortgages year-on-year, though this was before recent rate rises<\/span>\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
\n- \n
\n- The\u00a0average\u00a0rental\u00a0home now\u00a0receives\u00a08 enquiries, down from 11 a year ago and\u00a029\u00a0at the\u00a02022\u00a0peak, though\u00a0this is\u00a0still higher than\u00a0the average of\u00a05\u00a0seen\u00a0pre-pandemic<\/span>\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
\n- \n
\n- More than a quarter (26%)\u00a0of rental listings saw a price reduction, the highest proportion\u00a0at this time of year\u00a0since Rightmove started recording this metric in 2012<\/span>\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
\n- Rightmove\u2019s daily buy-to-let mortgage tracker\u00a0highlights\u00a0how\u00a0rates have increased since the start of the\u00a0war in Iran, increasing cost pressures for landlord\u00a0investors<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
What\u2019s\u00a0happening with rental prices?<\/span><\/b>\u00a0<\/span><\/p>\nThe average advertised rent of homes coming onto the market outside of London remained flat (0.0%) in Q1 2026, holding at \u00a31,370 per calendar month. This is the first\u00a0time since 2017 that\u00a0rents have not increased at the start of the year\u00a0from Q4 into Q1.\u00a0<\/span>\u00a0<\/span><\/p>\nWhile rents have levelled off\u00a0quarter<\/span>\u2011on<\/span>\u2011quarter, average advertised rents outside of London are still 1.6% higher than this time last year, though this\u00a0is the lowest this figure has been since 2018.<\/span>\u00a0<\/span><\/p>\nTwo key drivers are\u00a0likely influencing\u00a0a more muted start to the year for rent increases.\u00a0With\u00a0rental market supply and demand at its most balanced since 2020, lower tenant demand\u00a0and a greater choice of homes\u00a0is reducing competition for rental homes and upwards pressure on rents.<\/span>\u00a0<\/span><\/p>\nIn addition,\u00a0with wage growth\u00a0slowing\u00a0and inflation still above the Bank of England\u2019s target 2%,\u00a0affordability pressures\u00a0remain\u00a0for tenants, with more likely reaching a ceiling of what they can pay in their area, particularly in higher-priced areas such as\u00a0the capital.<\/span>\u00a0<\/span><\/p>\nIn London, average advertised rents rose by 0.7% this quarter to \u00a32,736 per calendar month, though rents are still lower than Q3 2025\u2019s record.\u00a0<\/span>\u00a0<\/span><\/p>\nWhat\u2019s\u00a0happening with\u00a0rental\u00a0market activity?<\/span><\/b>\u00a0<\/span><\/p>\nThere are currently no<\/span>\u00a0<\/span><\/b>major signs\u00a0on a national scale\u00a0of changes to market dynamics ahead of the Renter\u2019s Rights Act coming into effect from 1<\/span>st<\/span>\u00a0May.<\/span>\u00a0<\/span><\/p>\nThe number of\u00a0available homes\u00a0to rent is now 3% higher than a year ago,\u00a0with supply at\u00a0its highest level for this time of year since 2021. While this marks a meaningful improvement compared with recent years, overall supply\u00a0remains\u00a0below\u00a0longer<\/span>\u2011term\u00a0norms.<\/span>\u00a0<\/span><\/p>\nHowever,\u00a0there\u2019s\u00a0been no surge in newly listed homes for rent ahead of 1<\/span>st<\/span>\u00a0May.\u00a0In fact, while the total number of\u00a0available homes\u00a0for rent is\u00a0higher than recent years, the\u00a0number of newly listed rental properties\u00a0coming onto the market in the full month of March\u00a0is\u00a0actually 6%\u00a0lower than at\u00a0the\u00a0same point\u00a0last year.\u00a0<\/span>\u00a0<\/span><\/p>\nAnother\u00a0positive indicator\u00a0for rental supply,\u00a0is that\u00a0data from UK Finance shows a small uptick in\u00a0the number of\u00a0new buy-to-let loans at the start of the year, and an 18% uplift in\u00a0volume of\u00a0buy-to-let remortgages year-on-year. In total, the number of buy-to-let loans was 14% higher at the start of 2026 compared with the start of 2025. However, this data only covers January, before significant recent rate rises.<\/span>\u00a0<\/span><\/p>\nThe balance between tenant demand and supply of rental homes continues to improve.\u00a0The average rental home now receives 8 enquiries, down from 11 a year ago and 29 at the 2022 peak, though still higher than 5 pre-pandemic.<\/span>\u00a0<\/span><\/p>\nAgents report landlords taking a more measured,\u00a0longer<\/span>\u2011term\u00a0approach, focusing on securing reliable tenants and ensuring properties\u00a0remain\u00a0competitively priced in a less pressured market.<\/span>\u00a0<\/span><\/p>\nWhat\u2019s\u00a0happening with buy-to-let mortgage rates?<\/span><\/b>\u00a0<\/span><\/p>\nRightmove\u2019s daily\u00a0buy<\/span>\u2011to<\/span>\u2011let\u00a0mortgage tracker shows\u00a0how rates have increased since the start of the war in Iran, increasing cost pressures for landlord investors. While\u00a0it\u2019s\u00a0early days and\u00a0there\u2019s\u00a0no\u00a0clear signs\u00a0as yet, higher mortgage costs could\u00a0impact\u00a0new investment in the future.<\/span>\u00a0<\/span><\/p>\nThe average\u00a0two<\/span>\u2011year\u00a0buy<\/span>\u2011to<\/span>\u2011let\u00a0mortgage rate for a landlord\u00a0purchasing\u00a0a rental property\u00a0with a 25% deposit is now 5.79%, up from 4.86% before the war\u00a0in Iran\u00a0started.<\/span>\u00a0<\/span><\/p>\nRightmove\u2019s\u00a0property expert Colleen Babcock says<\/span><\/b>:\u00a0<\/span>\u201c<\/span><\/i>Rents holding steady this quarter reflects how affordability\u00a0remains\u00a0stretched, but also how supply and demand\u00a0is more balanced. With more homes available to rent and less competition between tenants, landlords are\u00a0needing\u00a0to\u00a0position rents\u00a0correctly for the current market\u00a0to secure a tenant.<\/span><\/i>\u00a0<\/span><\/p>\n\u201c<\/span>As market conditions rebalance, homes are taking longer to let.\u00a0The market is more price sensitive, with landlords needing to be realistic from the outset to secure a tenant and reduce the risk of void periods. Around 26% of rental listings are now reduced in price while advertised, the highest proportion recorded since Rightmove began tracking this metric in 2012.<\/span><\/i>\u00a0<\/span><\/p>\n\u201cAhead of the Renters\u2019 Rights Act coming into force, the data\u00a0doesn\u2019t\u00a0suggest a single or immediate reaction from landlords. Instead, behaviour appears more cautious and considered, with many\u00a0focusing on longer-term\u00a0tenancies,\u00a0pricing\u00a0and avoiding void periods in a more balanced market.<\/span><\/i>\u00a0<\/span><\/p>\n\u201cIt\u2019s still early days, but the most immediate shift due to the war in Iran has been some significant increases to borrowing costs for landlords, which may filter through to the\u00a0market\u00a0at a later stage.\u201d<\/span><\/i>\u00a0<\/span><\/p>\nAdam Jennings, Head of Residential at\u00a0Chestertons, says:\u00a0<\/span><\/i><\/b>\u201cAcross Q1,\u00a0we\u2019ve\u00a0seen a clear pick-up in lettings activity, particularly towards the end of March, with a noticeable increase in viewings and agreed lets compared to earlier in the quarter. Well-presented, correctly priced properties are continuing to let quickly, especially in areas where supply\u00a0remains\u00a0constrained.<\/span><\/i>\u00a0<\/span><\/p>\n\u201cWith the Renters\u2019 Rights Act coming into force from 1 May, there has understandably been some uncertainty among landlords. However, the strength of demand we saw in late March has provided reassurance, with many landlords continuing to see competitive levels of interest and strong rental values.<\/span><\/i>\u00a0<\/span><\/p>\n\u201cIn parts of the prime market,\u00a0we\u2019re\u00a0also seeing demand supported by international relocations, including some movement from the Middle East, which is adding to overall activity. Overall, while the legislative backdrop is evolving, the lettings market has\u00a0remained\u00a0active, with momentum building into the end of the quarter.\u201d\u202f<\/span><\/i><\/p>\n
- \n
- \n
- \n
- Average advertised rents in London rose by 0.7% this quarter to \u00a32,736pcm<\/span>\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
- \n
- \n
- \n
- Average rents outside\u00a0of\u00a0London are still 1.6% higher than this time last year, though this is the lowest this figure has been since 2018<\/span>\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
- \n
- No major signs of\u00a0changes to market dynamics ahead of the Renter\u2019s Rights Act coming into effect from 1<\/span>st<\/span>\u00a0May, as\u00a0tenant demand and supply\u00a0balance\u00a0continues to improve:<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
- \n
- \n
- \n
- The\u00a0total\u00a0number of\u00a0available\u00a0homes\u00a0to rent\u00a0is\u00a0now\u00a03% higher than a year ago,\u00a0and at\u00a0the highest level for this time of year since 2021, but\u00a0there\u2019s\u00a0been no surge in newly listed homes for rent<\/span>\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
- \n
- \n
- \n
- Latest data\u00a0from UK Finance shows a small uptick in new buy-to-let loans\u00a0in January,\u00a0and an 18% uplift in\u00a0buy-to-let\u00a0remortgages year-on-year, though this was before recent rate rises<\/span>\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
- \n
- \n
- \n
- The\u00a0average\u00a0rental\u00a0home now\u00a0receives\u00a08 enquiries, down from 11 a year ago and\u00a029\u00a0at the\u00a02022\u00a0peak, though\u00a0this is\u00a0still higher than\u00a0the average of\u00a05\u00a0seen\u00a0pre-pandemic<\/span>\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
- \n
- \n
- \n
- More than a quarter (26%)\u00a0of rental listings saw a price reduction, the highest proportion\u00a0at this time of year\u00a0since Rightmove started recording this metric in 2012<\/span>\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
- \n
- Rightmove\u2019s daily buy-to-let mortgage tracker\u00a0highlights\u00a0how\u00a0rates have increased since the start of the\u00a0war in Iran, increasing cost pressures for landlord\u00a0investors<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
What\u2019s\u00a0happening with rental prices?<\/span><\/b>\u00a0<\/span><\/p>\n
The average advertised rent of homes coming onto the market outside of London remained flat (0.0%) in Q1 2026, holding at \u00a31,370 per calendar month. This is the first\u00a0time since 2017 that\u00a0rents have not increased at the start of the year\u00a0from Q4 into Q1.\u00a0<\/span>\u00a0<\/span><\/p>\n
While rents have levelled off\u00a0quarter<\/span>\u2011on<\/span>\u2011quarter, average advertised rents outside of London are still 1.6% higher than this time last year, though this\u00a0is the lowest this figure has been since 2018.<\/span>\u00a0<\/span><\/p>\n
Two key drivers are\u00a0likely influencing\u00a0a more muted start to the year for rent increases.\u00a0With\u00a0rental market supply and demand at its most balanced since 2020, lower tenant demand\u00a0and a greater choice of homes\u00a0is reducing competition for rental homes and upwards pressure on rents.<\/span>\u00a0<\/span><\/p>\n
In addition,\u00a0with wage growth\u00a0slowing\u00a0and inflation still above the Bank of England\u2019s target 2%,\u00a0affordability pressures\u00a0remain\u00a0for tenants, with more likely reaching a ceiling of what they can pay in their area, particularly in higher-priced areas such as\u00a0the capital.<\/span>\u00a0<\/span><\/p>\n
In London, average advertised rents rose by 0.7% this quarter to \u00a32,736 per calendar month, though rents are still lower than Q3 2025\u2019s record.\u00a0<\/span>\u00a0<\/span><\/p>\n
What\u2019s\u00a0happening with\u00a0rental\u00a0market activity?<\/span><\/b>\u00a0<\/span><\/p>\n
There are currently no<\/span>\u00a0<\/span><\/b>major signs\u00a0on a national scale\u00a0of changes to market dynamics ahead of the Renter\u2019s Rights Act coming into effect from 1<\/span>st<\/span>\u00a0May.<\/span>\u00a0<\/span><\/p>\n
The number of\u00a0available homes\u00a0to rent is now 3% higher than a year ago,\u00a0with supply at\u00a0its highest level for this time of year since 2021. While this marks a meaningful improvement compared with recent years, overall supply\u00a0remains\u00a0below\u00a0longer<\/span>\u2011term\u00a0norms.<\/span>\u00a0<\/span><\/p>\n
However,\u00a0there\u2019s\u00a0been no surge in newly listed homes for rent ahead of 1<\/span>st<\/span>\u00a0May.\u00a0In fact, while the total number of\u00a0available homes\u00a0for rent is\u00a0higher than recent years, the\u00a0number of newly listed rental properties\u00a0coming onto the market in the full month of March\u00a0is\u00a0actually 6%\u00a0lower than at\u00a0the\u00a0same point\u00a0last year.\u00a0<\/span>\u00a0<\/span><\/p>\n
Another\u00a0positive indicator\u00a0for rental supply,\u00a0is that\u00a0data from UK Finance shows a small uptick in\u00a0the number of\u00a0new buy-to-let loans at the start of the year, and an 18% uplift in\u00a0volume of\u00a0buy-to-let remortgages year-on-year. In total, the number of buy-to-let loans was 14% higher at the start of 2026 compared with the start of 2025. However, this data only covers January, before significant recent rate rises.<\/span>\u00a0<\/span><\/p>\n
The balance between tenant demand and supply of rental homes continues to improve.\u00a0The average rental home now receives 8 enquiries, down from 11 a year ago and 29 at the 2022 peak, though still higher than 5 pre-pandemic.<\/span>\u00a0<\/span><\/p>\n
Agents report landlords taking a more measured,\u00a0longer<\/span>\u2011term\u00a0approach, focusing on securing reliable tenants and ensuring properties\u00a0remain\u00a0competitively priced in a less pressured market.<\/span>\u00a0<\/span><\/p>\n
What\u2019s\u00a0happening with buy-to-let mortgage rates?<\/span><\/b>\u00a0<\/span><\/p>\n
Rightmove\u2019s daily\u00a0buy<\/span>\u2011to<\/span>\u2011let\u00a0mortgage tracker shows\u00a0how rates have increased since the start of the war in Iran, increasing cost pressures for landlord investors. While\u00a0it\u2019s\u00a0early days and\u00a0there\u2019s\u00a0no\u00a0clear signs\u00a0as yet, higher mortgage costs could\u00a0impact\u00a0new investment in the future.<\/span>\u00a0<\/span><\/p>\n
The average\u00a0two<\/span>\u2011year\u00a0buy<\/span>\u2011to<\/span>\u2011let\u00a0mortgage rate for a landlord\u00a0purchasing\u00a0a rental property\u00a0with a 25% deposit is now 5.79%, up from 4.86% before the war\u00a0in Iran\u00a0started.<\/span>\u00a0<\/span><\/p>\n
Rightmove\u2019s\u00a0property expert Colleen Babcock says<\/span><\/b>:\u00a0<\/span>\u201c<\/span><\/i>Rents holding steady this quarter reflects how affordability\u00a0remains\u00a0stretched, but also how supply and demand\u00a0is more balanced. With more homes available to rent and less competition between tenants, landlords are\u00a0needing\u00a0to\u00a0position rents\u00a0correctly for the current market\u00a0to secure a tenant.<\/span><\/i>\u00a0<\/span><\/p>\n
\u201c<\/span>As market conditions rebalance, homes are taking longer to let.\u00a0The market is more price sensitive, with landlords needing to be realistic from the outset to secure a tenant and reduce the risk of void periods. Around 26% of rental listings are now reduced in price while advertised, the highest proportion recorded since Rightmove began tracking this metric in 2012.<\/span><\/i>\u00a0<\/span><\/p>\n
\u201cAhead of the Renters\u2019 Rights Act coming into force, the data\u00a0doesn\u2019t\u00a0suggest a single or immediate reaction from landlords. Instead, behaviour appears more cautious and considered, with many\u00a0focusing on longer-term\u00a0tenancies,\u00a0pricing\u00a0and avoiding void periods in a more balanced market.<\/span><\/i>\u00a0<\/span><\/p>\n
\u201cIt\u2019s still early days, but the most immediate shift due to the war in Iran has been some significant increases to borrowing costs for landlords, which may filter through to the\u00a0market\u00a0at a later stage.\u201d<\/span><\/i>\u00a0<\/span><\/p>\n
Adam Jennings, Head of Residential at\u00a0Chestertons, says:\u00a0<\/span><\/i><\/b>\u201cAcross Q1,\u00a0we\u2019ve\u00a0seen a clear pick-up in lettings activity, particularly towards the end of March, with a noticeable increase in viewings and agreed lets compared to earlier in the quarter. Well-presented, correctly priced properties are continuing to let quickly, especially in areas where supply\u00a0remains\u00a0constrained.<\/span><\/i>\u00a0<\/span><\/p>\n
\u201cWith the Renters\u2019 Rights Act coming into force from 1 May, there has understandably been some uncertainty among landlords. However, the strength of demand we saw in late March has provided reassurance, with many landlords continuing to see competitive levels of interest and strong rental values.<\/span><\/i>\u00a0<\/span><\/p>\n
\u201cIn parts of the prime market,\u00a0we\u2019re\u00a0also seeing demand supported by international relocations, including some movement from the Middle East, which is adding to overall activity. Overall, while the legislative backdrop is evolving, the lettings market has\u00a0remained\u00a0active, with momentum building into the end of the quarter.\u201d\u202f<\/span><\/i><\/p>\n
- Rightmove\u2019s daily buy-to-let mortgage tracker\u00a0highlights\u00a0how\u00a0rates have increased since the start of the\u00a0war in Iran, increasing cost pressures for landlord\u00a0investors<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
- More than a quarter (26%)\u00a0of rental listings saw a price reduction, the highest proportion\u00a0at this time of year\u00a0since Rightmove started recording this metric in 2012<\/span>\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
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- The\u00a0average\u00a0rental\u00a0home now\u00a0receives\u00a08 enquiries, down from 11 a year ago and\u00a029\u00a0at the\u00a02022\u00a0peak, though\u00a0this is\u00a0still higher than\u00a0the average of\u00a05\u00a0seen\u00a0pre-pandemic<\/span>\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
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- Latest data\u00a0from UK Finance shows a small uptick in new buy-to-let loans\u00a0in January,\u00a0and an 18% uplift in\u00a0buy-to-let\u00a0remortgages year-on-year, though this was before recent rate rises<\/span>\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
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- The\u00a0total\u00a0number of\u00a0available\u00a0homes\u00a0to rent\u00a0is\u00a0now\u00a03% higher than a year ago,\u00a0and at\u00a0the highest level for this time of year since 2021, but\u00a0there\u2019s\u00a0been no surge in newly listed homes for rent<\/span>\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
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- No major signs of\u00a0changes to market dynamics ahead of the Renter\u2019s Rights Act coming into effect from 1<\/span>st<\/span>\u00a0May, as\u00a0tenant demand and supply\u00a0balance\u00a0continues to improve:<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
- Average rents outside\u00a0of\u00a0London are still 1.6% higher than this time last year, though this is the lowest this figure has been since 2018<\/span>\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
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- Average advertised rents in London rose by 0.7% this quarter to \u00a32,736pcm<\/span>\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
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