UK Property Market Update – Confidence Returning Despite Higher Mortgage Rates

UK Rental Market Update – A More Stable Market for Landlords in 2026

The UK property market continues to show resilience despite higher mortgage rates and wider economic uncertainty. While much of the national conversation has focused on house prices and borrowing costs, the rental sector itself remains active and well supported by ongoing tenant demand.

For landlords across the UK the market is now shifting into a more balanced and sustainable phase after several years of extremely rapid rental growth.

Rental Market Showing Renewed Momentum

Latest figures show average UK rents increased again in March 2026, marking the first monthly rise since late 2025. Outside London, rental values continue to grow steadily, although at a more controlled pace than previously seen.

This slower growth should not necessarily be viewed negatively. In many ways, it reflects a healthier and more sustainable rental market, where affordability and long-term tenant stability are becoming increasingly important.

Tenant demand remains strong in many areas, particularly for well-maintained properties in good locations with sensible pricing. Across much of the North West, demand continues to outweigh supply in key rental sectors including family homes, HMOs and professionally managed accommodation.

Affordability Is Becoming More Important

One of the biggest factors shaping the market in 2026 is affordability.

Tenants are now spending a larger proportion of their income on rent than ever before, particularly in larger towns and cities. As a result, the days of automatic large annual rent increases are beginning to slow across many areas.

For landlords, this means pricing strategy matters more than ever. Properties that are presented well, maintained properly and priced realistically are continuing to perform strongly and attract quality long-term tenants.

Professional management is also becoming increasingly important as regulations continue to tighten and tenants become more selective about where they live.

A Market That Still Favours Good Landlords

Although the pace of rental growth has slowed compared to previous years, the overall outlook for landlords remains positive.

Demand for rental accommodation remains high, and well-run properties continue to let quickly in many areas. Landlords who invest in maintaining their properties, staying compliant and offering a good standard of accommodation are likely to remain in a strong position moving forward.

At Mishkan Estates, we continue to support landlords across the North West with full property management, Lettings, compliance, maintenance coordination and tenant management.

If you are reviewing your portfolio, considering changes to your rental strategy, or simply want advice on current market conditions, our team is always happy to help.