Lettings Market Report.
January 2026.

The latest landlord market update.

Tenant Demand

Tenant registrations between Jan - July have increased year on year from 10,925 in 2024 to 11,029 this year. With 12 applications for every property we list, landlords can choose from a strong pool of tenants.

This year we’ve seen particularly high interest in:

• Properties with allocated parking – letting faster, reducing voids, and achieving stronger terms.
• Homes offering flexible space for home working – commanding premium rents.
• Energy-efficient properties with higher EPC ratings – attracting multiple applicants and let quickly.

Market Supply

Between January and July 2025, instructions dipped slightly from 9,934 to 9,786. Despite fewer instructions, demand remains robust, with lets agreed up 3.64% year-on-year (6,122 to 6,345).

While just over 60% of what's listed on the wider market is let, we successfully let 92% of the properties we bring to market – maximising returns for our landlords.

Average Rents per Month (YTD)

Here are the average rents we achieved per month from January to July 2025:

Across our territories, Farnborough has seen the sharpest rise in 2-bed rents (up 7% year-on-year), while Reading remains the most competitive market with almost a 20% increase in tenant registrations versus 2024.

For landlords, 2–3 bed properties continue to deliver some of the strongest and most reliable rental returns.

Types of Properties Let by Us (Jan–July 2025)

Between January and July 2025, 41.70% of the properties we let were two-bedroom. These are achieving just over £1,500 p/m on average, making them the standout choice for investors seeking consistent yields and long-term tenant demand.

Renters’ Rights – What Landlords Need to Know

The Renters’ Rights Bill is expected to pass into law in autumn 2025. Once the Bill becomes law, there will be an implementation period. It’s anticipated the implementation will begin a few months after Royal Assent, with some parts possibly coming into effect earlier than others.

Key reforms to expect include:

• Abolition of Section 21 “no fault” evictions.
• All tenancies converting to periodic agreements.
• Rent increases limited to once per year, challengeable at tribunal.
• Greater rights for tenants to keep pets.

We’re advising landlords to review tenancy agreements now to avoid being caught out when the transition begins. With Prospect managing over 150 lettings regulations, we’ll ensure you stay one step ahead when the Bill takes effect.

Great Tip of the Month – Energy Efficiency = Higher Rent & Lower Voids

Tenants are becoming far more energy conscious. Homes with better EPC ratings are letting faster and at higher rents.

Quick wins that can increase appeal and future-proof your property:

• Switch to LED lighting (low cost, instant EPC boost).
• Add smart thermostats for efficient heating.
• Improve loft or cavity wall insulation.
• Consider EV charging if space allows - increasingly popular.

Our data shows tenants are often willing to pay £50–£100 more per month for homes that save them money on bills. Making these upgrades not only boosts rent but also improves tenant retention and reduces costly voids.

Finance Watch – Base Rate Cut to 4%

The Bank of England cut the base rate to 4% on 7 August 2025 (MPC vote 5–4). This move has a direct impact on landlord finance:

• Mortgage relief – Tracker and variable products are already adjusting downwards, easing monthly payments.
• Remortgage opportunity – Fixed rates are beginning to edge lower. Reviewing now could secure a better deal before markets shift again.
• Investment outlook – Lower borrowing costs make expansion more attractive.
• Future path – Analysts expect one more cut before year-end, but policy will remain cautious due to inflation.

For some landlords, this cut could mean saving hundreds per month – freeing up capital for improvements or portfolio growth. Reviewing your finance now could deliver significant long-term savings. We can introduce you to specialist mortgage brokers for tailored advice.

Final Word

Despite regulatory change, the lettings market remains strong, and well-positioned landlords are achieving record income and tenant stability.

Now is the perfect time to review your portfolio, ensure compliance, and maximise rental return.

Book your free landlord review today – we’ll help you protect your income, grow your portfolio, and prepare for the changes ahead.

Contact us