Why the UK Rental Market is Poised for Growth in 2026: Rightmove’s Positive Outlook for Property Investors.

As we head into 2026, the UK rental market is showing promising signs of continued growth. According to Rightmove, the UK's leading property portal, rental demand is expected to rise steadily throughout 2026, despite a few fluctuations in the market. This creates a clear opportunity for property investors looking to benefit from sustained tenant demand and ongoing rental shortages.

With limited supply continuing to drive rental values higher, the outlook remains positive for landlords, particularly those using buy-to-let mortgages to expand or rebalance their portfolios.

UK Rental Market Overview

Rightmove’s latest data shows that while rental growth slowed slightly in 2025, the UK rental market remains highly active. Average rents are forecast to rise by around 2 per cent in 2026. 

The market is driven by a number of factors, including increasing demand for rental properties and a chronic shortage of available homes to rent. For property investors, this structural shortage provides a stable foundation for long-term rental income.

Key Drivers for Growth in 2026

• Ongoing Supply Shortages
  The total number of available rental homes is still a third lower than it was ten years ago, showing a chronic lack of stock. Rightmove forecasts that this shortage will continue to push rents upwards in 2026, particularly in high-demand areas of the UK.

• Positive Indicators for Future Supply
  The recent uptick in new buy-to-let mortgage activity is a positive sign for the future of the rental market. In 2025, there was a 13% increase in new buy-to-let mortgages compared to 2024, along with a 23% rise in remortgages. This indicates that more investors are entering the market, with landlords choosing to retain existing properties and add new ones to their portfolios.

• Rising Tenant Demand
  While the competition between tenants for rental properties has eased compared to the pandemic years, the demand for homes remains strong. In particular, the North West and Scotland have seen a rise in rental demand, with 16 enquiries per property, compared to 7 enquiries per property in London. This shift highlights growing opportunities for property investors beyond the capital within the wider UK rental market.

What Does This Mean for Property Investors?

For property investors, the 2026 outlook is highly favourable. With rents forecast to rise by 2%, those who enter the rental market now can expect solid returns on their investments, particularly in areas where demand is high.

• London’s Ongoing Role in the UK Rental Market
  Although London experienced a slight slowdown in 2025, it remains one of the most desirable rental markets in the UK. For experienced property investors, London still offers stability and scale within the UK rental market.

• Growth Areas Like the North West and Scotland
  Areas outside London, particularly in the North West and Scotland, are seeing higher-than-average demand, making them ideal locations for investment. As affordability pressures persist in the capital, these regions are expected to play a growing role in the UK rental market throughout 2026.

What Can Investors Expect in 2026?

In 2026, the UK rental market is expected to benefit from improving affordability for landlords, particularly as mortgage rates stabilise. With the average two-year buy-to-let mortgage rate dropping from 5.51% to 4.84%, landlords will be better positioned to invest in rental properties. This will further encourage investment and help to alleviate some of the pressure on the supply side.

For property investors, the combination of rental income and long-term capital growth continues to make the UK rental market an attractive option, particularly in London, the North West, and other regional hotspots.