Rents are set to rise further as landlord supply continues to decline, according to the latest RICS Residential Market Survey. The January 2026 data shows tenant demand has returned to positive territory while landlord instructions have fallen deeper into negative.
Tenant demand up, landlord supply down
The survey found that tenant demand edged higher in the three months to January, with a net balance of +13 percent of respondents reporting increased enquiries. This ends two consecutive quarters of flat or slightly negative readings.
Landlord instructions, meanwhile, fell to a net balance of -24 percent – indicating that for every landlord adding properties to the market, roughly three are withdrawing. This supply-demand imbalance is driving rent expectations higher, with +28 percent of respondents anticipating rental price increases in the near term.
For landlords still in the sector, the data confirms that rental yields remain strong in most regions. However, continued supply withdrawal will test affordability limits and may prompt further policy intervention.
House prices stabilise with regional variation
In the sales market, national house prices appear to be stabilising. The net balance for prices over the past three months improved to -10 percent, up from a low of -19 percent in October 2025.
Regional disparities are widening. Scotland and Northern Ireland continue to see positive price trends, with growth also reported in the North West and North of England. London, the South East, South West and East Anglia are lagging, with prices still under pressure.
Simon Rubinsohn, RICS chief economist, said there are early signs that market conditions may be improving after a challenging period, although activity levels remain subdued.
“Whether this tentative improvement develops into sustained momentum will depend heavily on the trajectory of mortgage rates and broader macro confidence over the coming months,” Rubinsohn said.
12-month outlook most positive since late 2024
Expectations for the next 12 months have strengthened considerably. A net balance of +35 percent of RICS members anticipate higher sales over the year ahead – the most positive reading since December 2024. Price expectations are even stronger, with +43 percent anticipating higher prices, the best outlook since February 2025.
For buy-to-let investors, the continued reduction in rental supply supports income growth but also signals ongoing sector consolidation. Larger landlords may benefit as smaller operators exit under regulatory and tax pressure.
The full RICS UK Residential Market Survey is available on the RICS website.
Editor’s view
The rental market is telling a clear story: supply is falling, demand is rising, and rents will follow. Policymakers cannot be surprised when this translates into affordability headlines. The solution is more supply, not more regulation.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 12 February 2026
Sources: Royal Institution of Chartered Surveyors
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