UK Rent Forecast 2026: Why Rental Prices Are Rising and How Renting Directly from Landlords Can Benefit Tenants

Private rents in the UK have continued to rise throughout 2025 — and forecasts indicate that 2026 will bring further increases. With a persistent shortage of rental homes and growing tenant demand, renters are facing intense competition and higher costs nationwide.

Here’s what’s driving the market — and how direct renting from landlords can benefit tenants.

Rents Are Still Rising Across the UK

Data shows private rents increased by around 5% in the past year, with average monthly rent in England now exceeding £1,400. Analysts predict a further 3–4% increase in 2026, depending on the region.

Rental pressure remains highest in areas where demand strongly exceeds supply, such as London, Manchester, Bristol, Birmingham and university towns.

Why Rental Prices Are Increasing

There are several key reasons behind ongoing rent growth:

Limited Rental Supply

Many landlords have left or are leaving the market due to increasing taxes, regulations and costs. This means there are fewer rental homes available — but tenant demand remains strong.

With fewer properties to choose from, landlords can ask more from a larger pool of tenants competing for limited homes.

Higher Landlord Costs

The costs of owning and managing a rental property have increased, including:

• Mortgage interest

• Maintenance and repairs

• Compliance and certification

• Insurance and taxes

These pressures drive landlords to raise rents to maintain financial viability.

Growing Demand from Renters

Fewer people are buying homes due to mortgage affordability issues, pushing more into the rental market. In addition, population growth and greater movement between cities continue to fuel rental demand.

When demand outstrips supply, prices rise — and 2026 looks likely to follow this pattern.

What This Means for Tenants and Landlords

Tenants:

Expect higher rents, high competition for listings, and even more negligent agents.

Landlords:

Finding tenants should remain relatively easy, though regulatory and cost pressures are increasing the complexity of letting out property.

Overall:

A tight rental market is likely to persist into 2026.

How Renting Directly from Landlords Can Benefit Tenants

With rents rising for limited lettings, renting directly from landlords offers several advantages:

No Agency Fees

Letting agents may charge:

• Administration fees

• Contract renewal fees

• Service add-ons

By renting directly, tenants avoid these extra costs entirely.

Easier and Direct Communication

Direct renting allows tenants to:

• Understand who they’re dealing with

• Deal directly with the decision-maker & build trust from the start

• Less chance of messages being delayed or miscommunicated through a third party

• Address concerns or questions immediately

This direct communication creates clarity and confidence for both parties and supports a stronger, long-term rental relationship

Faster Negotiation and Flexibility

Dealing directly with the property owner enables

• Faster decision-making

• Easier negotiation on rent levels

• More flexible terms around move-in dates, deposits & references

• Increase transparency throughout the process

Landlords often prefer a quick, reliable tenancy with lower void risk.

A good landlord-tenant relationship can mean:

• Greater mutual understanding and respectful communication

• Longer, more stable tenancies

• A more personal approach, rather than rigid box-ticking policies

Tips for Tenants in a Rising-Rent Market

Tenants can strengthen their chances by:

• Starting their search early

• Preparing documents in advance (Photo ID, Right to Rent documents, proof of income, references, credit check information)

• Connecting directly with landlords to build a trustworthy relationship from the start

• Strengthening their application with a short personal introduction

• Understanding their rights as tenants

• Negotiating respectfully on rent and move-in date

• Being financially prepared to pay the security deposit promptly when moving in

  
  

  Being organised and proactive can make a major difference.

Final Thoughts

The UK rental market remains challenging, and 2026 will continue to see rising prices driven by strong demand and limited supply. For tenants seeking a flat, renting directly from a landlord can offer a more personal and flexible experience.

Homesty is designed to make this easy — connecting tenants and landlords directly, with transparency, control and no unnecessary agent fees