There have been many changes to the rental market in recent years, and these have affected both landlords and tenants in the private rented sector. In this blog, we’re looking into what to expect from the rental market in 2026.
The rental market is expected to continue growing at a steady pace in 2026, with increase rates predicted of 2-3%. This is great news for landlords who continue to benefit from high tenant demands throughout the country.
The last 12 months have introduced changes to Capital Gains Tax, which come into force in 2027 and changes to interest rates, which affects mortgages.
The most significant changes have been introduced as a result of the Renters’ Rights Act being successfully passed through Parliament. Find out more about what this means and the expected timelines of the Act.
What to expect from the rental market for tenants
It’s vital that landlords consider what tenants are looking for in order to ensure their properties are tenanted and that they are maximising their income. Tenant needs are always changing, so it’s a good idea to work alongside a letting agent who can remain ahead of these changes and support you effectively.
Great energy efficiency in rental homes
With energy bills remaining high, tenants are searching for energy efficient homes where they can potentially save money. Landlords should do what they can to improve their property’s EPC rating.
Ability to work from home
Working from home has grown as a result of the pandemic, with many companies still allowing employees to work from home. To facilitate this, tenants are looking for versatile rooms that can be used as a home office.
Modern properties
A nicely decorated home can be highly effective when it comes to ensuring tenant satisfaction and also attracting reliable tenants. Landlords should remain ahead of design trends to support this as renters increasingly prioritise it.
Seamless rental experience
Many tenants find the rental application process quite challenging. It is becoming more important that tenants have a smooth experience when renting. At Intus Lettings, we ensure that every tenant has a seamless experience when renting through us.
What to expect from the rental market for landlords
Regulatory changes
The last 12 months have highlighted some key changes for landlords, including the Renters’ Rights Act, which introduces changes to tenancy agreements, and Making Tax Digital. The Act also means that all tenancies become periodic tenancies and there is new guidance on maintaining rental properties.
It’s vital that landlords remain ahead of developments and manage tenant expectations effectively, and a trusted letting agent can help with this.
Adapting to smart technology
As we mentioned previously, it’s crucial that tenants have access to a seamless experience, and one way that this can be achieved is by using the correct technology. We ensure that every landlord and tenant has a professional and seamless experience throughout the lettings process.
Ensure energy efficiency for lower running costs
Landlords must do what they can to ensure their homes are energy efficient. There are many ways that landlords can achieve this, such as using energy efficient light bulbs, upgrading to modern appliances, replacing single pane windows and much more.
Every home is required to have an EPC rating, and tenants should have access to this before they agree to rent the property.
Mortgage costs and rates
Interest rates are expected to remain stable or drop slightly, which can have a positive impact on mortgage rates, and therefore the rest of the property market. It is also expected that house prices will see growth of between 1-4%. Many landlords can expect to continue benefiting from high rental demand, making this a great long term investment.
Are you a landlord looking for support with your rental portfolio? Contact our friendly team today who have years of experience in the private rental sector.
