Full Breakdown
Stagnation in Rental Prices Outside London Amid Increased Demand in Select Areas
4/16/2026, 7:44:59 AM
Overview of Rental Market Trends
In early 2026, average asking rents outside London experienced a notable stagnation, marking the first instance since 2017 where rents did not increase from the end of one year to the beginning of the next. According to data from Rightmove, the average advertised rent for homes outside the capital remained unchanged at £1,370 per month between the fourth quarter of 2025 and the first quarter of 2026. In contrast, London saw a quarterly increase of 0.7%, raising the average rent to £2,736 per month during the same period.
Factors Influencing Rental Prices
Rightmove reported that over a quarter (26%) of rental listings outside London experienced price reductions, the highest proportion recorded for this time of year since 2012. This shift is attributed to lower tenant demand and an increase in available rental properties, which has lessened competition among renters. The average rental home now receives eight inquiries, a decrease from 11 a year ago and significantly lower than the peak of 29 inquiries in 2022.
Colleen Babcock, a property expert at Rightmove, noted that the current market reflects a balance between supply and demand, with affordability pressures remaining a significant concern for tenants. She stated, “Rents holding steady this quarter reflects how affordability remains stretched, but also how supply and demand is more balanced.” Babcock emphasized that landlords must adjust their rental prices to align with market conditions to attract tenants and minimize void periods.
Increased Activity in Select Areas
Despite the overall stagnation, there has been a resurgence in lettings activity, particularly towards the end of March 2026. Adam Jennings, head of residential at Chestertons, observed a marked increase in viewings and agreed lets compared to earlier in the quarter. He highlighted that “well-presented, correctly priced properties are continuing to let quickly, especially in areas where supply remains constrained.” This indicates that while the broader market is experiencing stagnation, specific locations are still witnessing significant rental price increases.
Implications for Landlords and Tenants
The current rental market dynamics suggest that landlords may need to adopt more competitive pricing strategies to secure tenants in a landscape characterized by reduced demand and increased supply. As homes take longer to let, the need for realistic pricing becomes crucial to mitigate the risk of prolonged vacancies.
Verbatim Quotes
- “Rightmove property expert Colleen Babcock said: “Rents holding steady this quarter reflects how affordability remains stretched, but also how supply and demand is more balanced.” — Colleen Babcock, Rightmove Property Expert
- “ Adam Jennings, head of residential at Chestertons, said: “Across (the first quarter of 2026), we’ve seen a clear pick-up in lettings activity, particularly towards the end of March, with a noticeable increase in viewings and agreed lets compared to earlier in the quarter.” — Adam Jennings, Head of Residential at Chestertons
Conclusion
The rental market in early 2026 presents a complex picture, with stagnation in average rents outside London juxtaposed against localized increases in select areas. As landlords navigate these changing conditions, the emphasis on affordability and competitive pricing will likely shape the future of rental agreements across the UK.
