UK rents are expected to rise by about 3% over the next 12 months, according to the Royal Institution of Chartered Surveyors, after its August survey found tenant demand still rising while new landlord instructions remained in decline.
RICS recorded a +44% net balance of surveyors expecting rents to increase over the next three months, up from +33% in July. The monthly tenant-demand balance stood at +18%, while the landlord-instructions measure was -14%.
A rise in rent expectations sits beside a supply measure that is still negative. That leaves landlords facing a market where demand is present, but the cost of finance, maintenance and compliance can still shape whether a property stays available to let.
Rental supply has not caught up with demand
The RICS UK Residential Market Survey for August does not give a rent forecast for every town or tenancy type. It does show the national balance of members expecting rental growth became more positive during the month, even as new supply from landlords remained constrained.
Tarrant Parsons, Head of Market Research and Analysis at RICS, said the wider housing market was gradually finding its footing but recovery remained fragile. He cited uncertainty around borrowing costs and speculation before the October Budget as near-term tests for buyers and sellers.
This follows Landlord Knowledge’s July report on RICS figures showing tenant demand rising while landlord supply stayed tight. The latest return points to the same rental imbalance, although the annual growth expectation of about 3% is a national average rather than a promise of higher rents in every local market.
Sales indicators improve but remain below neutral
RICS said new buyer enquiries improved to -19%, their least negative reading since January, while agreed sales rose to -17% after reaching -38% in April. Expectations for sales over the next three months also moved closer to neutral, at -3% from -13% in July.
House prices remained under pressure, with the headline price balance at -28%, only slightly better than July’s -29%. London was weaker than the national reading, while Northern Ireland continued to report price growth and the North West recorded a gentler rise.
Landlords considering a purchase should treat those regional differences seriously. Landlord Knowledge’s August coverage of RICS sales data also found a subdued market, so a local letting appraisal and realistic financing assumptions matter more than a national headline.
What this means for landlords
- If you are reviewing a rent: use local evidence and the tenancy position, rather than assuming the 3% national expectation applies to your property.
- Watch for: the October Budget and changes in mortgage pricing, both of which RICS identified as risks to a still-fragile recovery.
- Bottom line: demand remains supportive, but falling supply does not remove the need to price a rental realistically and control costs.
Editor’s view
RICS has again recorded the basic problem in the rental market: more tenant demand than fresh landlord supply. A 3% national expectation is less dramatic than recent rent increases, but it will offer little relief where households are already stretched and landlords are weighing new costs.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 10 September 2026
Sources: RICS UK Residential Market Survey, August 2026
Related reading: RICS says June tenant demand rose as landlord supply stayed tight
