Rental Pulse | January 2026: Your 2026 Strategy Guide

rental pulse january 2026

What 2025’s market shift means for your portfolio — and the 3 things you need to do before May

Welcome to 2026. The rental market rebalanced significantly in 2025 — supply increased, tenant demand eased, and rent growth slowed. For landlords, this shift creates both opportunities and risks.

With the Renters’ Rights Act coming into force in May, now is the time to position your portfolio strategically. This update gives you the market context, legislative deadlines, and practical actions to navigate the year ahead.

📊 The Market Context You Need

ONS (Nov 2025): Average UK rent reaches £1,366 per month

Annual rent growth slowed to 4.4% as the market rebalanced. Supply increased c.15% year-on-year while tenant demand eased — creating a more competitive lettings environment. Time to let averaged around 17 days nationally.

Sources: ONS Price Index of Private Rents; Zoopla Rental Market Report (Dec 2025)

4.4%

Annual Rent Increase

Source: ONS (Nov 2025)

+15%

Rental Supply Increase

Source: Zoopla (2025)

💰 Question 1: Should You Raise Rent in 2026?

The short answer: probably, but strategically.

With rent growth at 4.4% and inflation moderating, modest increases are still justifiable — but pushing too hard risks longer void periods in a more competitive market. Here’s how to approach it:

✓ Good tenants, property well-maintained?

Consider 3–5% increase aligned with market rates. Retention is cheaper than re-letting.

⚠ Below-market rent, strong demand area?

You may have room for a larger increase, but communicate early and justify with comparable market data.

⏸ Tenant struggling or property needs work?

Hold steady or delay. A void costs more than frozen rent, and the new legislative environment requires documented justification for increases.

Our recommendation: Review each tenancy individually. We can provide local comparables and help you strike the balance between income optimisation and tenant retention.

⏱️ Question 2: How Do You Minimise Void Periods in 2026?

With more supply competing for tenants, speed and presentation matter more than ever.

Across 824 properties we advertised in 2025, we proved that efficiency beats volume. Here’s what worked:

Dec 2025: Time to Let

18 days

vs 17 days market avg

Viewings Per Let

7

Down 73% from Jan

What this means for you: By December 2025, we were achieving faster lets with fewer viewings — proof that better marketing, accurate pricing, and thorough tenant screening work. Quality tenants move faster when properties are presented well.

Practical steps to reduce your void risk:

  • Pre-market preparation: Professional photos, minor repairs, deep clean before listing
  • Competitive pricing: We provide local comparables to position your property correctly
  • Fast tenant processing: Our average referencing time is 5 days — speed matters in competitive markets
  • Proactive renewals: Start renewal conversations 3 months before lease end to avoid surprise vacancies

Platform data: Internal analytics across 824 properties advertised (2025)

⚖️ Question 3: Are You Ready for the Renters’ Rights Act?

The biggest legislative shift in a generation begins 1 May 2026

Royal Assent received Oct 2025. These aren’t theoretical changes — they’re legal requirements with penalties for non-compliance.

🗓️ 30 April 2026

Last day to serve Section 21 (“no-fault”) notices. After this date, you cannot issue new Section 21 notices.

📋 1 May 2026

New tenancy regime begins: all tenancies become periodic (rolling) by default; Section 21 abolished entirely.

📄 31 May 2026

Deadline to provide existing tenants with required information (written statement of terms). Non-compliance penalties apply.

Your 3-point action plan:

1. Review your tenancy agreements — We’re updating all documentation to comply with new requirements

2. Understand your notice options — Section 8 grounds for possession become your only route (we’ll guide you through this)

3. Check property compliance — Awaab’s Law (damp/mould) and EPC requirements will be enforced more strictly

What we’re doing on your behalf:

  • Updating all tenancy agreements and legal documentation
  • Training our team on new notice procedures and rent increase rules
  • Enhancing compliance tracking systems
  • Preparing for increased council inspection activity
  • Proactive communication with all existing tenants before 31 May deadline

Source: Gov.uk Implementation Roadmap

Bottom Line

2026 favours landlords who are proactive, compliant, and strategic. The market has rebalanced, but professional management still makes the difference between profitable lettings and costly voids. With legislative changes incoming, now is the time to review your position.

⭐ Recent Success Stories

Possession Case: Legal Support When It Matters

When a tenant stopped paying rent, our Finance & Administration Manager guided the landlord through Section 8 proceedings — resulting in full possession and arrears recovery.

“The presence of LettingaProperty.com was very reassuring. Natalie was able to recognise legal jargon I may not really understand…” — Mr O., Bromley

Outcome: Possession awarded; £3,600 arrears recovered.

Long-Term Partnership: Decade of Stress-Free Management

“I have worked with lettingaproperty for more than a decade… their professionalism, diligence and reliability have been the backbone of a genuinely stress-free experience.” — KVC

First-Time Landlord: Expert Guidance

“I found the process overwhelming but Abby and lettingaproperty made the whole thing easy and painless.” — Megan, New Landlord (Dec 2025)

Need Help With Your 2026 Strategy?

Let’s discuss your portfolio positioning, rent reviews, and legislative compliance before the May deadline.

Schedule a Portfolio Review
Get Rental Valuation

Or call us on 0333 577 8888 |
WhatsApp us

📚 Further Reading

→ Gov.uk: Renters’ Rights Act 2025 — Implementation roadmap
→ ONS: Private Rent & House Prices (Dec 2025)
→ Rightmove: Rental Price Tracker
→ Zoopla: Rental Market Report (Dec 2025)
→ HomeLet Rental Index
→ Gov.uk: Awaab’s Law guidance
→ LettingaProperty: Possession success story
→ Read our reviews: Trustpilot
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