MOVE ON SALES & LETTINGS

The 2026 rental market in the south of England: A time of adjustment and risk

In 2026, the rental market across the UK — and especially in the south of England — is settling into a period of moderate change. After several years of sharp rent increases, the pace of growth has slowed and in some places rents are even edging down. But while the crunch of affordability has eased somewhat, pressures remain. Compounding these challenges is a rising incidence of rental scams, which are costing would-be tenants thousands of pounds and eroding confidence in the system.

Sharon Canning. Owner of Move On Sales and Lettings

Recent rental data paints a picture of a market moving away from the frenetic inflation of recent years. Reports from the HomeLet Rental Index show that average monthly UK rents were £1,302 in January 2026, with many regions, including the South West, now around £1,169 and South East around £1,401. Overall, these figures reflect a market where rent growth is stabilising rather than accelerating. 

Meanwhile, analysis from Hamptons suggests that average rents on newly agreed tenancies across Great Britain actually fell slightly over 2025, with London and the South East among the regions recording annual declines. In London, newly agreed rents dropped by 2.7%, and other southern regions saw minimal gains or small falls — evidence that affordability pressures are easing the competition for homes to let. 

Rental availability has also improved. Reports show that the number of homes available to rent across England has risen by around 20% over the past year, giving tenants slightly more choice. 

Despite this, rents remain high compared with many parts of the UK, and the South continues to lag behind northern regions in terms of rental yield and growth forecasts, with investors increasingly looking to markets outside the South for stronger returns. 

Affordability Still a Strain

Even with cooling rental growth, many renters — particularly those on lower incomes — face affordability challenges. High advertised rents in London and the South East continue to eat into household budgets, and support such as the Local Housing Allowance (LHA) remains frozen at earlier levels, leaving some tenants without sufficient housing assistance. 

Meanwhile, demand remains resilient in many parts of the South, especially for larger homes suitable for families and remote working. 

Rental Scams: A Growing Threat

One of the least talked-about — but increasingly serious — risks in the current UK rental market is rental fraud. According to data compiled by UK crime reporting agencies and fraud prevention bodies, rental scams cost tenants millions of pounds in recent years. 

These scams typically involve fraudsters advertising properties that either do not exist or that they do not have the right to let. Criminals may copy legitimate rental listings then change the contact details, encouraging would-be tenants to send deposits before ever seeing the property. Some scams go further, fake tenancy paperwork and even deposit protection certificates are used to create a veneer of legitimacy.  

Given the growing risk of fraud, due diligence is essential. Experts advise:

• Never pay fees before viewing the property in person or verifying the landlord’s credentials. 
• Confirm ownership and right to let via the HM Land Register. 
• Deal only through reputable, registered letting agents. 
• Report any suspicious listings to Action Fraud and the platform hosting the advert. 

Final Thoughts

The rental market in the south of England in 2026 is at a crossroads. Rent growth is stabilising and legal protections for tenants is strengthening. Yet affordability remains a concern, and new hazards like rental scams mean that renters must be vigilant and well informed.

For tenants, 2026 may bring more choice and security, but only those who stay informed, wary of scams, and proactive in their search will truly benefit from the shifting landscape.

The Value of Expert Support

A good letting agent can make the difference between a stress-free rental experience and a costly headache. Professional agents handle marketing, tenant referencing, compliance, deposit protection, safety checks, rent collection, and maintenance—dramatically reducing the risk of fines, disputes, and void periods. In a competitive and regulated market, expert management provides peace of mind and protects long-term returns.

Move On was founded by Sharon Canning in 2006, bringing with her 20 years of industry experience. Nearly two decades later, that expertise now totals 40 years. Renowned locally as true lettings specialists, Move On has built its reputation on knowledge, professionalism, and landlord support.

For a free, friendly chat, contact Sharon or her team, or email sharon@moveon.biz.

 

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