Rents are set to keep rising as landlord supply tightens, even though the wider housing market is still struggling for momentum, according to the latest RICS residential survey for May 2026.
The survey shows tenant demand remained in positive territory at +14 percent while landlord instructions fell further to -28 percent. At the same time, rent expectations climbed to +36 percent, their strongest reading for a year. Sales activity was also weak, with new buyer enquiries stuck at -34 percent and agreed sales at -37 percent.
For landlords, the immediate message is that rental demand is still holding up better than the sales market. But the same figures also suggest a market where stock remains tight, affordability is still stretched and void-risk assumptions need to be judged carefully by area rather than by headline averages.
RICS says rental pressure is building again
The latest regional affordability pressures already covered by Landlord Knowledge are now being echoed in the national RICS picture. While buyer demand has not worsened further since April, it remains firmly negative, and surveyors said the average time from listing to completion has stretched to 21.5 weeks – the longest since RICS began tracking the measure in 2017.
That matters for landlords because weaker sales conditions can delay disposals, refinancing plans and portfolio reshuffles. At the same time, the rental market is still dealing with the opposite problem: too few homes coming forward.
Tarrant Parsons, head of market research and analysis at RICS, said the latest figures suggested the downturn in activity may be starting to stabilise, but added that it would be premature to call it a recovery while the core indicators remain in negative territory.
Why the landlord supply data matters more than the sales data
The sharper landlord angle sits in the lettings figures rather than the sales balances. Tenant demand at +14 percent is not especially extreme by the standards of the last two years, but landlord instructions at -28 percent show supply is still moving the wrong way. That is why near-term rent expectations have strengthened again even as overall housing sentiment remains subdued.
This follows Landlord Knowledge’s June report on landlords selling three homes for every one bought, which highlighted how weak reinvestment is feeding directly into rental stock pressure. The latest RICS survey points to the same issue from a different angle: supply is not recovering fast enough to take heat out of rents.
A useful warning for landlords is that this does not automatically mean easy gains everywhere. In markets where affordability is already badly stretched, faster rent growth can be harder to sustain and tenant churn can become more costly. Stronger headline pricing power is not the same thing as lower operating risk.
RICS also said the 12-month sales outlook had moved back into positive territory at +2 percent. If mortgage pricing eases later in the year, some landlords may find sales conditions improve. For now, though, the rental side of the market still looks tighter than the owner-occupier side.
Landlords reviewing rents, acquisition plans or exit timing will probably take more from the supply data than from the sales balances. The clearest fresh signal in the survey is not demand roaring back – it is supply staying scarce.
The full RICS May 2026 residential market survey shows the same split clearly: sales conditions remain weak, but rental supply is still too thin to ease pressure on rents.
What this means for landlords
- If you’re reviewing rents: local supply shortages still support increases, but affordability limits are biting harder in stretched areas.
- If you’re planning a sale: longer transaction times mean exits may take more patience than expected this summer.
- Watch for: whether landlord instructions stay negative through the next RICS release, because that will keep upward pressure on rents.
- Bottom line: the sales market may be stabilising, but the rental market remains tighter for one simple reason – not enough landlords are adding stock.
Editor’s view
There is no great mystery in these figures. If landlords keep selling faster than they buy, rents will keep finding support even in a softer economy. The bigger risk is assuming that tighter supply guarantees an easier life – in many markets it simply means tenants are under more strain.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 11 June 2026
Sources: RICS, Propertymark
Related reading: Landlords sell 3 homes for every 1 bought, NRLA warns
