Rental property supply increased 12 percent in January while tenant arrears fell to their lowest level in recent months, according to new data from Propertymark – though the figures predate the Iran conflict that has since disrupted the housing market.
The trade body’s latest market snapshot shows the average number of tenants registering per agency branch jumped from around 60 before Christmas to 87 by late January, while arrears affecting landlords dropped to just 2.1 percent of the rental population.
Supply still outstripped by demand
Despite the 12 percent monthly increase in available properties, competition for rental homes remains intense. Propertymark reports roughly seven tenants chasing each available property – a ratio that continues to give landlords strong negotiating power on rents and tenant selection.
The data adds to evidence that the private rented sector entered 2026 in better shape than expected, with tenant demand remaining strong even as mortgage pressures and regulatory changes push some landlords toward the exit.
Nathan Emerson, chief executive of Propertymark, said the figures reflected a market that was stabilising before external shocks hit. “January showed encouraging signs of balance returning to the rental market, with supply improving and arrears declining. However, these figures were captured before the geopolitical disruption that has since affected mortgage pricing and market confidence.”
Arrears at lowest level
The fall in significant arrears to 2.1 percent suggests tenants are managing household finances more effectively despite cost of living pressures. This compares favourably with industry data from late 2025 when arrears were running higher.
For landlords preparing for the Renters’ Rights Act changes in May, lower arrears provide some reassurance about tenant payment reliability – though the new possession grounds will make recovering properties from non-paying tenants more complex and time-consuming.
The January snapshot also comes as separate data shows the proportion of smaller landlords continuing to decline, with properties consolidating into larger portfolios. For Propertymark’s full market analysis, landlords can visit the Propertymark news page.
What this means for landlords
- If you’re reviewing your portfolio: Supply improvements haven’t eliminated competition – seven tenants per property still gives landlords leverage on tenant quality.
- Watch for: Whether these trends hold as the Iran conflict affects mortgage costs and broader economic confidence.
- Bottom line: January data shows a functioning market, but conditions may shift as rate volatility feeds through to landlord decisions.
Editor’s view
These January figures offer a useful baseline before geopolitical events complicated the picture. Landlords should note the arrears improvement – it suggests tenants are prioritising rent payments even under cost pressures. Whether that continues as energy costs rise remains to be seen.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 20 March 2026
Sources: Propertymark
Related reading: Rental competition falls to six-year low as tenant demand drops 14%
