A busy rental market does not always mean landlords can simply list a property and expect the right tenant to appear. The latest figures show that competition for rented homes remains strong, but the picture varies considerably by location, property type and price.
For landlords, that makes local knowledge increasingly important. Understanding how many tenants are searching, what they can afford and how much competing stock is available can help shape decisions around rent, presentation and property management.
Related: Managing tenancies under the new rules: how letting agents protect landlords’ interests
Demand remains strong, but competition is easing
The rental market is no longer seeing the extreme levels of competition recorded a few years ago, but demand has not disappeared.
Zoopla reported an average of 5.6 enquiries for every rental property in May 2026. That was well below the 2022 peak of 15.5 enquiries per home, but competition remained above levels seen before the pandemic. At the same time, the number of available rental properties was still around 25% below pre-pandemic levels.
That combination matters. Tenants may have slightly more choice than they did at the height of the rental shortage, but good-quality homes in the right location can still attract significant interest. For landlords, the useful question is therefore not simply, “Is demand high?” It is whether demand is strong enough for the particular property being offered.
Rents are still rising
Rental growth also shows that pressure has not disappeared from the market. According to the Office for National Statistics, the average monthly private rent in the UK reached £1,383 in May 2026, 3.3% higher than a year earlier. In England, the average was £1,442, up 3.4%.
There were clear regional differences too. In England, annual rent growth was highest in the North East at 5.9%, while London recorded the lowest growth at 2.0%.
For landlords, national figures are useful context, but local conditions matter more when setting a rent. The property’s location, condition and comparable homes nearby should all help determine an appropriate asking price.
Related: Holding deposits explained: What tenants and landlords need to know
Affordability is shaping demand
One of the clearest trends is that tenants are becoming more sensitive to price. Zoopla found that rents were rising fastest in many of the more affordable parts of the country, while some higher-priced markets were seeing slower growth or even falls. Its June 2026 report recorded annual rental growth of 2.1% for new lets nationally, but rents were increasing faster than the national average in three-quarters of local rental markets.
This makes accurate pricing particularly important. Setting the rent too high can narrow the pool of suitable applicants and leave a property empty for longer. Setting it too low may reduce income unnecessarily. The aim should be to find the point where rental income and tenant interest meet.
The type of property also matters
Tenant demand varies by property type, size and location. A family looking for a three-bedroom house will have different priorities from someone searching for a city-centre flat, so landlords should consider their likely audience when setting the rent and marketing the property.
What landlords can do during a busy rental period
Strong demand can create opportunities, but it should not encourage rushed decisions. Landlords can focus on a few practical areas:
- Checking comparable rents before setting an asking price.
- Making sure the property is clean, well maintained and ready for viewings.
- Responding quickly to enquiries while carrying out proper referencing.
- Reviewing maintenance before small problems become larger repairs.
- Keeping tenancy documents and compliance records organised.
Good management matters beyond summer
Tenant demand can change as affordability, rental supply and local needs shift. Landlords should therefore review rental income, maintenance costs, void periods and local competition regularly rather than relying on the performance of a previous tenancy.
Summer data suggests that demand remains healthy, although the market is becoming more balanced. Martin & Co can provide local insight and professional property management support to help landlords price, market and manage their property effectively.
