UK Asking Rents Continue to Decline Across All Regions

According to Home.co.uk, the annualised growth rate for asking rents in the UK has dropped to -4.1%, marking a significant downturn for landlords. This decline spans every English region as well as Scotland and Wales, indicating a nationwide trend rather than isolated pockets of weakness.

The East Midlands is experiencing the steepest fall, with asking rents down by 12.5%. London’s rental market is increasingly mixed, with 18 out of 33 boroughs now reporting rent decreases. For example, in Kensington and Chelsea, rents have fallen by 6.9% over the past year, and properties take an average of 49 days to let, reflecting a slower market.

Increased Housing Supply Adds to Market Pressure

Alongside falling rents, the supply of homes for sale is rising sharply. Home.co.uk reports a 20% increase in properties coming to market compared to the previous year, with Scotland, the North East, East Midlands, and North West seeing the most significant growth. This surge has pushed supply to its highest January level since 2015.

Although the volume of unsold stock has slightly eased recently, seasonal trends suggest that listings will continue to build through the first half of 2026. This increased availability of properties is reshaping market dynamics and adding further downward pressure on prices.

House Prices Show Fragility Amid Market Changes

House prices across England and Wales have remained largely flat, rising just 0.5% compared to January 2025. Most regions experienced monthly price declines, with the East of England seeing the sharpest drop of 0.8%. In contrast, the North East and North West recorded modest growth of 2.7% and slightly less, respectively.

London’s housing prices have declined by 1% on an annualised basis, reflecting the uneven rental market and broader economic pressures. Longer selling times are also evident, with properties typically spending five days longer on the market than a year ago. The South West has seen the most pronounced increase in marketing periods, contributing to price corrections in that region.

Implications for Landlords and Letting Agents

The combination of falling rents and rising supply means landlords are facing squeezed returns from both rental income and capital growth. The market is at a decisive point, with overall growth drifting towards zero or below in some areas, which may weaken confidence even among long-term investors.

Landlords should be aware that longer letting and selling times could affect cash flow and portfolio management. Letting agents may need to adjust marketing strategies and advise clients accordingly to remain competitive in this evolving market.

Outlook for the UK Rental Market

Home.co.uk warns that the current trends of rent reductions and price stagnation reflect a broader cooling of the housing market. While some regions still show modest growth, the overall picture suggests a cautious approach is necessary for landlords and agents navigating 2026.

Suggested internal link anchors

• asking rents
• rental market trends
• housing supply
• house prices
• letting agents
• landlord returns
• property market
• rental income
• market dynamics
• property listings
• housing market trends

TLA update

TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/