Rent Forecasts 2026: What London Landlords Really Need to Know

Yippee! Only six more sleeps till Christmas.

Before we squeeze in yet another mince pie and head off home to put our feet up, let’s take a look at where rents and the rental market might be heading in 2026.

The stats say it’s actually been a positive 2025 for landlords.

Demand for rentals has been high. Official stattos the ONS say average UK monthly private rents rose 5% over the last year.*

2026 - What the experts think

So where do some of the national experts think rents are going next year?

  • Chartered surveyor’s body RICS forecasts rents will rise 3% next year.***

  • In their pre-Budget report, the Government’s Office for Budget Responsibility (OBR) simply forecast ‘a steady long-term rise in rents' . ****

2026 - What we think

The big grey elephant in the rental market room right now is the Renters’ Rights Act. It starts in England on 1 May 2026.

The extra 2% on property Income Tax announced in the Budget wasn’t good news either. (Although that doesn’t come in until 2027.)

Some people try to avoid mentioning these things. But we’re known for our plain talking.

It will all mean challenges for landlords. Some will decide to throw in the towel.

But there are positives for landlords who stay in the market.

Demand from renters will be as strong as ever. But there could be fewer homes for them to choose from. That could see rents marching onwards and upwards in 2026.

Bear in mind, Renters’ Rights caps rent increases to market levels once a year. This isn’t the same as rent control. It doesn’t mean you can’t increase your rents each and every year.

Overall, we think the market should stay strong in 2026. But it will be more vital than ever to find (or keep) good tenants. And set the rent just right.

Will the London market buck the trend?

Forecasts and averages are just what they say they are – forecasts and averages. They don’t always translate to real life.

In real life how much rent your house or flat will earn depends on what exactly it offers, demand from tenants and the area (and even the street) it’s in.

So if you need advice on rents, it’s vital to take advice from someone who knows the local lettings market inside out.

At AGENT Leslie & Co, we’ve oodles and oodles of real-life experience in the London lettings market. (And some of us have got the wrinkles to prove it.)

If you need our help with valuing, letting or managing your property give us a call.

Have a wonderful Christmas and New Year break.

If you know someone who might find this article useful please share it with them.

Letting and renting the ethical way

We are proud members of the Ethical Agent Network (EAN).

A national group of independent agents who have been independently tested to ensure we meet strict standards of honesty, service, professionalism and community care.

To find out more about what we do and why we passed the EAN and are the only local agency in the network, contact us today.

Sources:

* Office for National Statistics Nov 25

** Savills forecast

*** RICS forecast

**** OBR Economic and Fiscal Outlook Nov 25

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