After several years of frantic tenant competition, bidding wars and squeezed stock, the UK rental market has shifted into a new phase, and that shift in 2025 is setting the tone for 2026.
Over the past year, we’ve seen the best supply–demand balance since 2020:
- Listings up 11%
- Unique demand down 12%
- Enquiries per property are easing back from the 2022–23 peaks, but still above pre-2020 levels
At the same time, landlord exits have been rising, yet buy-to-let (BTL) loans are up 17%, with a 28% uplift in loans for new purchases.
In other words, this is not a market in decline. It’s a market that’s finally rebalancing, creating a very different landscape for landlords planning their strategy for 2026 and beyond.
Related: What the Renters’ Rights Act means for self-managing landlords from 27 December 2025
In this article, we’ll unpack what this “new normal” means for:
- Pricing, marketing and tenant quality
- Deciding whether to hold or sell
- Choosing a yield vs capital growth strategy
- Doing a Portfolio Review to maximise returns
Pricing right the first time under the Renters’ Rights Act
When the market was overheated, almost any listing attracted multiple offers and last-minute bidding wars. In 2026, with the Renters’ Rights Act reshaping how rents are set and challenged, the environment is far more discerning and much more regulated.
With more rental homes on the market, tenants now have the confidence and legal protection to compare properties more closely. They’re assessing:
- Price against similar homes locally
- Condition, decor and specification
- Photos, floorplans and descriptions
And under the Renters’ Rights Act:
- Rent bidding wars are banned, so landlords can’t rely on competitive over-offers
- Tenants have stronger rights to challenge unfair or poorly evidenced rent increases
- Pricing must be defensible and consistent with local market data
Overpricing in this landscape carries real consequences. Around 24% of listings were reduced in 2025, and a reduction doesn’t just lower your rent, it also:
- Extends void periods while the property regains momentum
- Signals to tenants that the listing may have struggled
- Encourages tougher negotiation from applicants who know the rules favour transparency
Heading into 2026, getting the rent right from day one is one of the most effective ways to protect your yield, minimise voids and stay fully compliant.
At Martin & Co, we combine live market data, including recent lets, enquiry patterns and portal performance, with the new requirements of the Renters’ Rights Act to set ambitious but defensible asking rents. We also closely monitor early activity, so we can adjust the strategy quickly and compliantly if needed.
Related: Budget 2025 and the property market: What landlords and homeowners should know
Hold or Sell in 2026? A Calm Framework for Decision-Making
Recent years have brought headlines about landlord exits and rising costs, with around 1 in 3 considering selling amid tax changes, regulation and mortgage pressures, yet BTL lending is up 17%, with a 28% uplift in loans for new purchases, as other landlords expand. Rather than panic-selling, 2026 is the time to step back and use a clear framework based on ROI, risk and compliance to decide what to do next.
1. ROI: Are your properties still performing?
Ask yourself:
- Yield: What are your true net yields once you factor in all costs?
- Growth potential: Is the local market still showing price resilience, regeneration or strong employment drivers?
- Income stability: What has arrears and void history looked like over the last 12–24 months?
A property delivering a solid 6–8% net yield with stable tenants and low arrears may still be a strong long-term hold, even if margins feel tighter than before.
2. Risk: What could disrupt your returns?
Consider the risks that might affect performance between now and 2026–27:
- EPC upgrades and potential tightening of minimum standards
- Further regulation changes around tenancies and property standards
- Mortgage rate trends, remortgage dates and your ability to fix or overpay
Some properties will carry higher risk but also significant upside; the key is to identify which is which, rather than treating your entire portfolio the same way.
3. Compliance and management: DIY vs professional support
If you self-manage, think about:
- Time spent arranging repairs, inspections and renewals
- Staying up to date with changing rules and paperwork
- Handling arrears, disputes and tenancy changes yourself
By 2026, the compliance burden is only likely to increase. For many landlords, partnering with a professional letting agent such as Martin & Co provides reassurance, time savings and reduced risk.
We assess each property’s performance, identify which ones are underperforming or strong, and help you decide whether to hold, improve, remortgage or sell and reinvest, ensuring your 2026 decisions are based on facts, not headlines.
Related: Top 10 benefits of professional property management for landlords
Yields vs Growth in 2026: Scotland & North East vs London
The right portfolio strategy for 2026 depends on your goals and where you’re investing. There’s a clear contrast between high-yield regions and high-growth regions.
High-yield regions: Scotland & North East
Some of the standout yield areas remain in Scotland and the North East, where investors can still find strong income returns:
- Scotland and the North East often deliver 8–9% yields
- Renfrewshire shows yields around 9.83%
- Darlington has a composite yield at around 14.4%
For landlords focused on income and cash flow, these high-yield markets can help offset higher finance and running costs, build a buffer against arrears or voids, and support more ambitious portfolio expansion plans.
High-growth region: London
London continues to offer a different proposition:
- Lower average yields, around 5.7%
- Higher long-term capital growth potential
If your strategy is to build equity and future exit value, accepting a lower income return today for capital growth tomorrow can still make sense in selected London and South East markets.
Matching your 2026 strategy to your goals
In 2026, it helps to know if you’re focused on yield (higher income areas), growth (strong capital appreciation markets), or a blend of both. We can help clarify your goals and shape a portfolio strategy that fits them.
Martin & Co’s Portfolio Review: Maximising Returns and Staying Compliant
A Martin & Co Portfolio Review is a structured, data-led check-up that looks at your rent levels and review schedules, EPC and safety compliance, tenant quality, arrears and voids, plus ROI across yields, growth and running costs, giving you a clear picture of how each property is really performing.
At the end, you’ll get a simple summary of performance, a view of key risks and quick wins (from rent reviews to refurb or remortgage opportunities), and tailored recommendations on whether to hold, improve, restructure finance or sell and reinvest – all focused on helping you optimise returns, reduce risk and stay compliant as the market evolves.
Making the Market Work for You
The changes brought in by the Renters’ Rights Act haven’t weakened the rental market – they’ve helped rebalance it, creating real opportunity for informed landlords through more sustainable pricing, stronger tenancies and space to refine strategy around clear goals. If you’d like to sense-check your next move, whether holding, selling or buying, your local Martin & Co office can help with a Portfolio Review so you can cut through the noise, understand your numbers and make confident, evidence-based decisions.
