The UK housing market stayed soft in April, but the latest Royal Institution of Chartered Surveyors survey suggests landlords should focus less on the sales slowdown and more on what it means for rental demand. RICS said new buyer enquiries remained negative at -34 percent, agreed sales sat at -36 percent and short-term sales expectations were also weak, while tenant demand continued to rise and landlord instructions stayed under pressure.
Buyer caution is still feeding the rental market
For landlords, the headline is not just that buyers are holding back. It is that the usual release valve into owner-occupation is still partly blocked by borrowing costs and wider uncertainty. That matters because the same RICS survey said the lettings market remains out of balance, with tenant demand increasing while supply from landlords continues to fall.
The survey showed the sharpest price weakness in London, the South East, East Anglia and the South West, while parts of the North West, the North of England, Scotland and Northern Ireland were more resilient. That split matters for landlords too. In weaker sales markets, some would-be buyers may stay in rented homes for longer. In stronger regional markets, investors may still find firmer pricing and more dependable tenant demand.
This follows Landlord Knowledge’s RICS report on rising tenant demand and weak landlord supply, which showed the same structural squeeze earlier this spring. April’s numbers suggest that pattern has not eased. If anything, the buyer slowdown is giving it another push.
Why the sales slowdown still matters to landlords
Landlords do not need booming house prices to do well, but they do need clarity on exits, refinancing and local demand. A flatter sales market can help some investors buy more selectively, yet it also means slower disposals and more sensitivity to mortgage pricing. RICS said twelve-month expectations for prices remained only marginally positive and were at their weakest level since late 2023.
There is a practical warning here. The weaker market is concentrated in already stretched southern regions, where landlords also face tighter affordability limits from tenants. That means investors should be wary of assuming rent growth alone will compensate for higher costs. In some towns, the better play may be tenant retention and steady cash flow rather than trying to chase headline rent rises.
RICS head of market research and analysis Tarrant Parsons said the market remains in the grip of macro headwinds. Landlords will recognise that quickly enough: elevated borrowing costs, patchy confidence and thin supply are keeping conditions awkward on both sides of the market. More detail is available in the latest RICS UK Residential Market Survey.
What this means for landlords
- If you’re reviewing rents: assume demand may stay firm, but test affordability carefully before pushing through increases.
- If you’re buying this year: weaker sales conditions in southern markets may improve negotiating room, especially where listings are building.
- Watch for: any further drop in landlord instructions, which would keep supply tight and support rents in many areas.
- If you’re planning an exit: leave more time for a sale and stress-test your numbers against slower buyer activity.
- Bottom line: a weak sales market is still propping up parts of the rental market, but not every region will convert that into stronger returns.
Editor’s view
Landlords should not cheer a slow housing market too loudly. It may keep tenants in place, but it also makes buying, refinancing and selling more awkward. The smarter read is that rental demand is being sustained by weakness elsewhere, not by a genuinely healthy market.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 14 May 2026
Sources: RICS
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