Falling Arrears and Rising Rents Point to a Strong UK Investment Outlook in 2026

The UK rental market is continuing to show stability as we head into 2026. Recent data from Propertymark, the leading professional body for property agents, points to a positive UK rental market outlook for 2026, offering reassurance for property investors.

Arrears at a Recent Low

Let’s talk arrears — always a crucial topic. Currently, only 1.7% of Propertymark’s member agents are reporting tenant arrears. This marks the lowest level since October 2022 and highlights a clear trend of rising rents and low arrears in the UK. For landlords, it means fewer issues collecting rent and a more dependable income stream. In short, a lot less hassle.

Nathan Emerson, Propertymark’s CEO, summed it up:

“It’s encouraging to see arrears at their lowest point since 2022. The rental market is clearly stable and resilient, even with ongoing long-term supply concerns.”

Rents Forecast to Reach New Highs in 2026

There’s more positive news for investors. Our latest market insights highlight strong rental growth projections, with rents expected to reach new record highs by 2026—driven by ongoing supply shortages and sustained tenant demand.

Together, rising rents and low arrears in the UK reinforce the strength of the rental market heading into 2026.

What It Means for Investors

For both domestic and overseas investors, this continuing stability is very welcome. Markets with high volatility in prices or arrears are hard to anticipate, making planning and portfolio building difficult. By contrast, the current UK rental market outlook for 2026 allows investors to better predict yields and build portfolios with greater confidence.

These conditions continue to support attractive UK property investment opportunities, particularly for income-focused investors.

Magnate’s View: Opportunity Ahead

At Magnate Assets, we see these indicators as a strong signal for UK residential investment. With rents rising and arrears at historic lows, well-located properties in key regional cities continue to offer stability and predictable returns.

For investors seeking resilient UK property investment opportunities, the combination of rising rents, low arrears, and constrained supply makes 2026 a year worth close attention.