RICS says tenant demand strengthened in June while landlord instructions stayed negative, adding to the supply pressure that is already keeping rents on an upward path for landlords across the UK.
The Royal Institution of Chartered Surveyors said its June 2026 residential market survey showed a +18 percent net balance for tenant demand, the strongest reading since May 2025. At the same time, landlord instructions remained at -18 percent, pointing to another month in which rental stock failed to keep pace with demand.
For landlords, the latest numbers matter because they suggest the rental market is tightening again even as the wider sales market stays subdued. RICS said rents are now expected to rise by around 2.5 percent over the next 12 months, with surveyors still reporting weak sales activity, fewer new instructions on the sales side and continued caution around borrowing costs and political uncertainty.
Tenant demand rises as rental stock stays tight
The strongest fresh landlord angle in the report is the split between demand and supply in lettings. While buyer enquiries and agreed sales both remained in negative territory, the rental market moved the other way, with survey respondents reporting firmer tenant demand and no real recovery in landlord supply.
That combination matters for existing landlords because it tends to support pricing power, shorter voids and stronger competition for well-presented homes. But it also keeps pressure on compliance, property condition and tenant retention, especially where tenants are paying closer attention to value and standards.
Tarrant Parsons, head of market research and analysis at RICS, said June’s survey offered “some cautious encouragement that the worst of the slowdown in market activity may be beginning to pass”, although he added that any improvement remained fragile and was being tested by renewed political uncertainty and uncertainty over inflation and borrowing costs.
That landlord-demand imbalance also fits with recent Landlord Knowledge coverage of HomeLet’s latest rent index, which showed London pulling further ahead while the UK average continued to rise. It also sits alongside Landlord Knowledge’s report on damp risk in private rented homes, underlining that tighter supply does not remove the pressure on landlords to keep stock compliant and competitive.
Sales market weakness could keep pressure on rents
RICS said new buyer enquiries were still negative at -29 percent in June, while newly agreed sales came in at -32 percent. Both readings were slightly better than in recent months, but they still point to a market that has not properly recovered.
New instructions to sell also weakened to -23 percent from -10 percent, which RICS said was the weakest reading in more than a year. House prices remained under pressure nationally, with the headline price balance at -33 percent, although expectations for the next 12 months were modestly positive.
For buy-to-let investors, that leaves a mixed picture. Softer sales activity may keep some would-be first-time buyers in the rental market for longer, helping demand. But it also means landlords looking to expand or exit still face a cautious transactional backdrop in many regions. The North and the Celtic nations were described as more positive than the South, continuing a trend seen in several recent housing reports.
The full RICS UK Residential Market Survey page is due to carry the June report after the embargo lifts.
What this means for landlords
- If you’re reviewing rents: RICS still sees enough demand pressure for rents to keep rising, but increases will need to reflect local competition and condition.
- Watch for: continued low landlord instructions, which could support occupancy but also sharpen tenant scrutiny of standards and maintenance.
- Bottom line: the sales market may be sluggish, but the lettings market is still tight enough to keep rental supply and pricing in focus.
Editor’s view
Rents do not need a booming economy to keep moving up – they just need supply to stay tight. The latest RICS figures suggest that is still the core problem, and landlords with compliant, well-run homes remain in a stronger position than the wider housing market headlines might imply.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 9 July 2026
Sources: RICS, UK Residential Market Survey June 2026
Related reading: HomeLet: London rents rise 5% as UK average hits £1,353
