The latest rental market figures suggest the pace of rent growth is beginning to stabilise, but demand for good quality rental homes remains strong.
According to Zoopla’s latest Rental Market Report, average UK rents have increased by 2.1% over the past year, taking the average monthly rent to £1,321. Whilst this is a slower rate of growth than we saw over the last few years, it doesn’t tell the full story. Around three quarters of local rental markets are still seeing rent increases above the national average because the number of homes available to rent remains well below pre-pandemic levels.
Competition between tenants has eased compared with the peak seen in 2022, but demand continues to outstrip supply in many parts of the country. This means well-presented and realistically priced properties are still attracting strong levels of interest.
Here in Solihull, demand continues to remain healthy.
We’re seeing well-maintained family homes and modern apartments let quickly when they’re priced correctly. Whilst tenants are becoming more selective due to the higher cost of living, there is still a shortage of quality rental properties available across the area.
The introduction of the Renters’ Rights Act has understandably caused some uncertainty for landlords. However, rather than creating a mass exodus from the market, many landlords are choosing to adapt and focus on providing well-managed, compliant rental properties. Recent industry data suggests landlord investment is proving more resilient than many initially expected.
For landlords who remain in the market, this continues to create opportunities, particularly where properties are presented well and managed proactively.
The market is no longer about achieving the highest possible rent. It’s about achieving the right rent.
Setting an asking rent that reflects current market conditions is far more likely to attract high-quality tenants quickly, reducing costly void periods and ensuring a smoother tenancy from the outset.
It’s also becoming increasingly important to stay on top of changing legislation. Compliance has never been more important, and with further changes continuing to arrive, many landlords are deciding that professional management offers greater peace of mind.
Good communication, regular property inspections and proactive maintenance remain some of the best ways to protect both your investment and your relationship with your tenants.
The remainder of 2026 is expected to see rental growth continue at a more sustainable pace of around 2% to 3% nationally. Supply remains below historic levels, which should continue to support rental values, although affordability will naturally influence how quickly rents can increase.
For landlords, the focus is shifting away from chasing record rent increases and towards long-term stability. Well-maintained properties, realistic pricing and strong tenant relationships are likely to deliver the best results.
Whether you’re an experienced landlord or considering letting your property for the first time, understanding your local market has never been more important.
At HS Homes, we provide honest rental valuations, advice on current legislation and a fully personalised service to help you maximise your investment while remaining compliant with the latest regulations.
If you’d like to find out what your property could achieve in today’s market, we’d be delighted to help.
