--- title: "RICS Data Highlights: UK Rent Growth Expectations Hit 2-Year High as Supply Shrinks" description: RICS data shows UK rent growth expectations at +41%, the strongest since 2024. Why rental income matters for anyone planning to invest in property in the UK today. image: https://blog.magnateassets.com/hubfs/RICS%20Data%20Highlights_%20UK%20Rent%20Growth%20Expectations%20Hit%202-Year%20High%20as%20Supply%20Shrinks.png --- [![logo](https://blog.magnateassets.com/hs-fs/hubfs/logo.png?width=216&height=50&name=logo.png "logo")](https://magnateassets.com/) × - [Properties](https://www.magnateassets.com/en/searchresult) - [Off-Plan](https://www.magnateassets.com/en/searchresult?proType=Off-Plan) - [Completed](https://www.magnateassets.com/en/searchresult?proType=Completed) - [High Yield Investing](https://www.magnateassets.com/en/high-yield-investing) - [HMO (Houses in Multiple Occupation)](https://www.magnateassets.com/en/property-hmo) - [Student Accommodations](https://www.magnateassets.com/en/property-student-accommodations) - [Property Sourcing](https://www.magnateassets.com/en/property-sourcing) - [Property Concierge](https://www.magnateassets.com/en/property-concierge) - [Land Options](https://www.magnateassets.com/en/searchresult?proFor=Local&proType=Land%20Options&country=UK) - [Property Bonds (Promissory Notes)](https://www.magnateassets.com/en/property-bonds) - [Buildings](https://www.magnateassets.com/en/searchresult?proType=Buildings) - [Build-to-Rent Projects](https://www.magnateassets.com/en/build-to-rent-projects) - [Equity Investments](https://www.magnateassets.com/en/equity-investments) - [Funding Partnerships](https://www.magnateassets.com/en/funding-partnerships) - [Locations](https://magnateassets.com/en/location) - Resources - [Blog](https://blog.magnateassets.com) - [Podcast/Webinars](https://www.magnateassets.com/en/video-gallery) - [Guides](https://info.magnateassets.com/guides) - Finance, Tax & Legal - [Mortgage Calculator](https://magnateassets.com/en/mortgage-calculator) - [Mortgages & Finance](https://www.magnateassets.com/en/mortgages-and-finance) - [Property Transfer & Legal](https://www.magnateassets.com/en/property-transfer-and-legal) - [Tax Planning and Set up](https://www.magnateassets.com/en/tax-planning-and-set-up) - [UK Immigration Information](https://www.magnateassets.com/en/uk-immigration-information) - [Managing Your Properties](https://www.magnateassets.com/en/managing-your-properties) - [Furniture Packs](https://www.magnateassets.com/en/furniture-packs) - About Us - [Meet the Team](https://www.magnateassets.com/en/meet-the-team) - [Contact Us](https://magnateassets.com/en/contact-us) - [UK Property Investment](https://www.magnateassets.com/en/for-uk-property-investment) - [Developer Partnerships](https://www.magnateassets.com/en/developer-partnerships) # RICS Data Highlights: UK Rent Growth Expectations Hit 2-Year High as Supply Shrinks Published by Keith Egan on Nov 13, 2026 Quick Summary London landlords are increasingly holding rather than selling as rental demand remains firm, supply tightens and stronger yields improve the case for professionally managed rental property. • **More landlords are retaining their portfolios:** Softer apartment values and sluggish sales activity are encouraging some owners to hold assets rather than sell at a loss • **Rental supply remains under pressure:** Regulatory and tax changes have encouraged some private landlords to exit, reducing available rental stock in parts of the London market • **Tenant demand is supporting yields:** Virelle estimates that properties previously yielding 4–5% could now generate 7–9%, although investors should test agency estimates against actual purchase prices and rents • **Some attempted sales are returning to the rental market:** Around one in four London landlords who listed properties after the Renters' Rights Act reportedly chose to re-let them instead • **Long-term investors should focus on resilient demand:** Well-located rental stock, realistic achieved rents and disciplined underwriting remain central to assessing London real estate and wider UK property opportunities Rent growth expectations across the UK have climbed to their strongest level since early 2024, according to the latest RICS Residential Market Survey. For investors weighing whether to invest in property in the UK, the signal is clear: tenant demand is returning while fewer homes are coming to rent. At a time when sales activity is softening, rental income is becoming the stronger leg of the investment case. ## What the RICS Data Shows for Investors Expectations for rent growth over the next three months rose to a net balance of +41%, from +29%. Tenant demand moved to a net +7% on a quarterly, seasonally adjusted basis, up from -1%, while landlord instructions fell to -30%. When rental demand rises and available stock shrinks, existing rental properties gain pricing power. The tightening of landlord supply also reflects wider changes across the private rental sector. For further context, see [UK Renters' Rights Act: Early Data Reveals Market Consolidation Opportunity](https://blog.magnateassets.com/uk-renters-rights-act-early-data-reveals-market-consolidation-opportunity).   ## Sales Softness, Rental Resilience Sales indicators are weaker. New buyer enquiries sit at -24%, and the headline house price balance has fallen to -36%. For property for sale in the UK, that shifts negotiating power toward buyers. London recorded weaker price trends than the national average, so property for sale in London may offer more room to negotiate. Scotland and the North West reported modest growth. Rental indicators are steadier. Corporate landlords tracked by LRG show arrears over 30 days falling from 3.3% to 2.7%, with annual rent rises up from 5.7% to 6.0%, six months after the Renters' Rights Act took effect. ModaMortgages research finds 85% of landlords are generating positive returns, with average yields holding firm \[3\]. For more on the rent trend, read [UK Rental Growth Holds Firm: Average Rents Rise 4.3% Year-on-Year](https://blog.magnateassets.com/uk-rental-growth-holds-firm-average-rents-rise-4.3-year-on-year-amid-strong-demand). For London-specific rental context, see [Prime London Rental Market Outpaces Global Cities with 5.3% Growth](https://blog.magnateassets.com/prime-london-rental-market-outpaces-global-cities-with-5.3-growth).   ## Comparing Rental Yields by Location Location still drives returns. Rushbrook's analysis of August 2026 data puts the England average gross yield at 6.0%. Newcastle upon Tyne leads at 6.9%, while Derbyshire Dales is lowest at 2.9%. Manchester, Bristol and Nottingham each record 6.4%, which makes them useful benchmarks for property investment Manchester comparisons.   ## Reading the Data Before You Invest in Property UK Three caveats apply. First, RICS measures surveyor sentiment, not recorded rents, so these readings are a leading indicator rather than a guarantee. Second, Rushbrook notes that a 2-percentage-point rise in property income tax will affect landlords differently depending on location. Third, professional buyers are raising their bar: LRG reports yield thresholds moving from 8%-plus to 10%-plus over the past year. Net yield after tax, not headline gross yield, should shape any decision to buy property in the UK, including the search for the best property to invest in the UK.   ## A Five-to-Ten Year View The rental data points to income support that does not depend on a sales market recovery. Investors who invest in property in the UK for yield, hold for the long term and use professional management are positioned to benefit as the sales market adjusts. For those asking how to get into property investment in the UK, a rental-first approach offers a clearer route to income than speculative price growth.   ## Conclusion Rent growth expectations at their strongest since 2024, falling landlord supply and resilient landlord returns together make a constructive rental outlook. Softer sales activity favours patient buyers of property for sale in the UK, and rental income is increasingly the anchor of the case. Investors looking to buy property in the UK should weigh gross yield, tax and location together. To discuss how rental-led strategies could fit your portfolio, contact Magnate Assets, a UK real estate investment company.     Topics: [Insider](https://blog.magnateassets.com/tag/insider), [London Property](https://blog.magnateassets.com/tag/london-property), [UK Property](https://blog.magnateassets.com/tag/uk-property), [Real Estate Market](https://blog.magnateassets.com/tag/real-estate-market), [Market Trends](https://blog.magnateassets.com/tag/market-trends), [Rents](https://blog.magnateassets.com/tag/rents), [Demand](https://blog.magnateassets.com/tag/demand), [Yield](https://blog.magnateassets.com/tag/yield) ![Keith Egan](https://blog.magnateassets.com/hubfs/image.png) Written by [Connect on LinkedIn ↗](https://www.linkedin.com/in/keith-egan-a4585613a/) [Keith Egan](https://blog.magnateassets.com/author/keith-egan) Keith Egan has spent 30+ years in senior real estate roles across the UK, Dubai and the MENA region. As Director and Co-Founder of Magnate Group, he leads Magnate Assets focused on UK residential investment, lead generation and digital marketing and the Magnate Investments Division, Magnate's development finance and structured investment arm. Keith specialises in connecting landowners, developers and investors with regulated, technology-driven funding structures and fractional ownership solutions, bridging institutional-grade UK real estate with a wider pool of domestic and international capital. - #### Share: - [![](https://f.hubspotusercontent10.net/hubfs/445465/icon/facebook.svg)](http://www.facebook.com/share.php?u=https://blog.magnateassets.com/rics-data-highlights-uk-rent-growth-expectations-hit-2-year-high-as-supply-shrinks) - [![](https://f.hubspotusercontent10.net/hubfs/445465/icon/twitter-sign.svg)](https://twitter.com/share?text=RICS%20Data%20Highlights:%20UK%20Rent%20Growth%20Expectations%20Hit%202-Year%20High%20as%20Supply%20Shrinks&url=https://blog.magnateassets.com/rics-data-highlights-uk-rent-growth-expectations-hit-2-year-high-as-supply-shrinks&hashtags=weareawesome&via=bluleadz) - [![](https://f.hubspotusercontent10.net/hubfs/445465/icon/linkedin.svg)](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.magnateassets.com/rics-data-highlights-uk-rent-growth-expectations-hit-2-year-high-as-supply-shrinks) [Back to Blog](https://blog.magnateassets.com) ### Popular Blogs \[Insider, London Property, UK Property, Real Estate Market, Market Trends, Rents, Demand, Yield\] - 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