RICS data shows rental growth expectations over the next three months climbed to a net balance of +41 percent in October, up from +29 percent, marking the strongest reading since early 2024, in its UK Residential Market Survey released on 12 November.
Tenant demand returned to modest growth on the quarterly measure at +7 percent, up from -1 percent, while landlord instructions stayed deeply negative at -30 percent. The gap between steady demand and falling supply underpins the renewed pressure on rents.
Investors face a split market where lettings tighten even as sales stall. The same survey puts twelve-month sales expectations at -17 percent, the most downbeat since July 2023, with new buyer enquiries at -24 percent and agreed sales at -24 percent as higher mortgage rates weigh on purchases.
Demand recovers as landlord supply keeps falling
Price signals in lettings moved up during October after tenant demand steadied. RICS data on tenant demand and landlord supply has tracked this mismatch through 2026, and the October update shows it widening again. Surveyors report fewer instructions coming through while enquiries hold up.
On sales, the headline price balance slipped to -36 percent from -34 percent, the second monthly fall after summer stabilisation. London, East Anglia, the West Midlands and the South East sat below the average, while Northern Ireland, Scotland and the North West recorded modest growth. Separate RICS estimates point to a relatively modest decline of around 1 percent over the year ahead.
Sales outlook weakest since July 2023
Mortgage costs sit behind the weaker sales picture. Tarrant Parsons, head of market research and analysis at RICS, said home buyer demand remains subdued and respondents are bracing for a weaker year ahead for sales given the persistent macroeconomic challenges being faced. He said: “With inflation now projected to approach 5 percent next year, mortgage rates are likely to remain elevated for longer, thereby continuing to weigh on the market.”
The flow of homes for sale also weakened, with new instructions at -8 percent against +6 percent previously and market appraisals at -34 percent, the lowest since November 2025. Bank of England warnings on a softer housing market underline why purchase demand stays fragile even where rental demand firms.
This follows Landlord Knowledge’s September report on RICS tenant demand hitting +23 percent, which showed supply failing to keep pace. The October figures suggest that pattern has hardened into a clearer rent outlook, with surveyors now more convinced that constrained supply feeds through to higher rents.
For context, the survey also signals that landlords continue to step back from sales listings. Combined with RICS market survey data showing instructions and appraisals sliding, the near-term pipeline points to fewer fresh rentals reaching the market.
What this means for landlords
- If you are reviewing rents: surveyors expect upward pressure over the next three months, so use evidenced comparables and stay within Tribunal-tested bands.
- If you hold stock in soft-sales regions: London and the South East show weaker price trends, which can favour hold-to-let over sale where yields cover higher finance costs.
- Watch supply signals: instructions at -30 percent and appraisals at a 12-month low point to fewer competing listings in the near term.
- Watch finance costs: with rates likely to stay elevated, stress-test any purchase or refinance against a longer high-rate period.
- Bottom line: tight supply supports rent levels, but sales weakness limits exit options, so price renewals carefully and keep voids low.
Editor’s view
The survey captures the current divide well. Rentals tighten because owners keep withdrawing stock, while sales drift because buyers cannot stretch. Landlords who can hold quality homes and document fair rent rises stand best placed.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 12 November 2026
Sources: RICS, Bank of England
Related reading: RICS: tenant demand hits +23% as landlord supply stays tight
