Lettings Market Update – Dec 2025
What Landlords and Tenants Need to Know as We Head into 2026
As we approach the end of 2025, the UK lettings market remains highly active, shaped by continued demand, legislative change, and a shortage of quality rental stock.
At Lawrence Rand Estate Agents, our on-the-ground experience gives us a clear picture of what’s really happening in the local rental market — beyond the headlines.
Strong Tenant Demand Continues
Tenant demand remains exceptionally high as we close out the year. Many renters are facing increased competition for well-presented, sensibly priced homes, particularly family houses and long-term rental properties.
Key drivers include:
- Limited rental supply
- Delayed first-time buyers remaining in the rental market
- Lifestyle and employment mobility
- Landlords exiting the sector
Well-managed properties continue to let quickly, often with multiple enquiries.
Rental Stock Remains Constrained
One of the defining features of the 2025 lettings market has been reduced stock levels. A combination of higher interest rates, tax changes, and ongoing uncertainty surrounding the Renters Reform Act has led some landlords to sell.
This reduction in supply continues to put upward pressure on rents, particularly in desirable locations and for properties that meet modern standards.
Rental Values: Stable with Upward Pressure
While rental growth has moderated compared to previous years, rents remain strong. Pricing is increasingly sensitive to:
- Property condition and energy efficiency
- Realistic initial pricing
- Length of tenancy and tenant profile
- Professional management and compliance
Landlords who invest in presentation and proactive management are seeing the best returns and longest tenancies.
Legislation and Compliance Still in Focus
As we move towards 2026, landlords must remain compliant and well-informed. Key considerations include:
- Preparing for the full implementation of the Renters Reform Act
- Energy efficiency requirements
- Deposit, licensing, and safety compliance
- Rent review strategies under changing legislation
Professional advice is now essential rather than optional.
What This Means for Landlords
Despite challenges, the lettings market still offers strong opportunities for landlords who take a strategic approach.
We recommend landlords:
- Review rental values annually
- Focus on long-term tenant retention
- Stay ahead of compliance changes
- Consider professional management to reduce risk
- Take advice before making portfolio decisions
Lawrence Rand: Your Local Lettings Experts
At Lawrence Rand Estate Agents, we help landlords navigate a changing market with clarity and confidence. Our lettings and property management teams provide honest advice, proactive service, and detailed local insight.
Whether you’re reviewing your portfolio, considering selling, or looking to maximise rental performance in 2026, we’re here to help.