Landlord press review: January 2026
Like every month, Rentila offers you an overview of the main real estate news of interest to landlords and tenants. This month, we focus on: Where did house prices rise and fall the most in 2025?; UK property market shows signs of recovery; 2026 mortgage market outlook: stability, confidence and a gradual return of momentum; UK rents expected to rise 2% in 2026 amid ‘chronic’ housing shortage; Two-thirds of landlords plan to invest despite Budget concerns… Happy reading and… renting!
The market
Best Buy-to-Let Areas in the UK for High Rental Yields 2026
The UK rental market continues to evolve as demand, affordability and regeneration projects shape investor decisions for 2026. With rental supply struggling to keep pace with population growth, investors are increasingly looking for areas where strong yields align with long-term resilience.
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Where did house prices rise and fall the most in 2025?
The 10 areas in the UK where house prices grew the most in 2025 have been revealed – as have the locations where prices fell by up to 8.9%.
Plymouth topped the list of housing hotspots where property values went up the most in the UK between October 2024 and October 2025.
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2025 was ‘one of the most settled years’ for house prices
This year was “one of the most settled years” for UK house prices over the past decade.
The average UK home now costs £299,892, an increase of just 0.7 per cent over the year and representing a new record high price.
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‘Bottom-up’ recovery predicted for housing market in 2026 as activity returns
The housing market is set for a strong start in 2026, according to property experts, as home buyers make the most of falls in mortgage rates and put some of last year’s uncertainties behind them.
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How West Midlands house values are holding up as UK prices fall
The UK housing market concluded 2025 on a “softer note,” with yearly price growth decelerating to 0.6% in December, down from 1.8% in November, according to an index.
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What 2026 could hold for the UK housing market
For many UK households, 2025 marked the beginning of the end of the mortgage rate shocks of the previous year. And while that did not mean a return to cheap borrowing, the easing of interest rates was clearly visible over the course of the year.
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The most expensive streets to buy or rent outside of London in 2026
Right now in the UK, the average house price stands at £270,000, according to December 2025 figures from the Office for National Statistics. Meanwhile, rental prices across the UK are about £1,366, and in England, this figure is around £1,422.
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UK property market shows signs of recovery
UK residential property transactions rose in November, with seasonally adjusted figures reaching their highest level since March, despite signs of slowing activity as the year end approached…
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Mortgage
Tax take may hit UK buyers harder in 2026
The past year has been a “landmark” one for both renters and homebuyers.
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Where are interest rates headed in 2026… and will mortgages keep getting cheaper?
Interest rates were cut four times this year, with base rate falling from 4.75 per cent to 3.75 per cent.
This was good news for homeowners with mortgages, who saw the average two-year fixed rate decrease from 5.52 per cent in January to 4.82 per cent in December according to rates scrutineer Moneyfacts.
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2026 mortgage market outlook: stability, confidence and a gradual return of momentum
After years of economic shocks and uncertainty, the UK mortgage market enters 2026 on far steadier ground. Having weathered rising interest rates, fiscal disruption and global volatility, the sector is now seeing renewed confidence, improving lending conditions and a more balanced outlook for buyers.
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UK mortgage rates unlikely to fall much further despite expected interest rate cuts
UK mortgage rates are unlikely to fall much further even if the Bank of England delivers additional interest rate cuts, as markets have already priced in expectations that Bank Rate will bottom out close to its long-term floor, property experts warn.
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Expectations are high for a booming mortgage market
Product choice continued to rise month-on-month to 7,158 options, meaning there are now 650 more deals available to borrowers than a year ago. This represents the highest level of product availability since October 2007, when choices peaked at 7,421, with deals at 90% and 95% loan-to-value ratios sitting at near 18-year highs.
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Mortgage rates drop again, says Moneyfacts
Moneyfacts found that the average two-year fixed rate homeloan fell by 2bps to 4.78%, while the typical five-year fix was down by 1bps to 4.87%.
Last week saw the average two-year and five-year fix fall by 3bps to 4.8% and 4.88%, respectively.
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Here’s where homeowners face the heaviest mortgage burden
New data has revealed the UK areas with the heaviest mortgage burdens.
According to a study, mortgage repayments now account for as much as 171.9 per cent of median take-home pay in some parts of London.
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Rent
Landlords spend 25% to 45% of rental income on running costs
Running costs continue to rise across the private rented sector, with maintenance and repairs now absorbing close to 40% of total landlord expenditure in some instances.
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Rents fall as market continues to slow amid fresh uncertainty
The latest HomeLet Rental Index figures show that average UK rents fell slightly to £1,317 in December 2025, down 1.5% month-on-month from £1,337 in November. Despite the monthly drop, rents remain 2.6% higher year-on-year, up from £1,284 in December 2024.
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UK rents expected to rise 2% in 2026 amid ‘chronic’ housing shortage
Rightmove (RMV.L) predicts that average advertised rents will rise by a further 2% over the course of 2026, as a “chronic shortage” of rental homes continues to place pressure on prices.
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Advice
What happens if the first month’s rent isn’t paid?
You don’t have to wait for the rent until Day 1, but you must not refuse to hand over the keys after the agreement has been signed. If you do, there is a real risk that you may have to pay fines (called “penalties”) of up to £40,000.
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Are you a landlord? These are the costly mistakes you could be making
Landlords are counting the cost of common and costly mistakes, from ill-judged renovations to mis-timed sales, a new survey reveals.
A significant number of buy-to-let investors are regretting decisions that have impacted their profits, according to a research.
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Why now is actually a great time to be a landlord
For the past few years, there has been a succession of reports in the media about landlords selling up and quitting the industry. And it’s true that as legislation has been tightened and renters’ rights have been prioritised, it now takes more time, effort and knowledge to succeed as a landlord than it did in the past.
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London property is no longer a safe investment
Recent analysis found that in 2025, 14.8% of London homeowners sold their properties for less than they originally paid, overtaking the North East, which had topped the ranking in 2024.
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Other
Government vows to tackle damp and mould in PRS
In answer to a written question, Housing Minister Matthew Pennycook says extending Awaab’s law to the private rented sector and a Decent Homes Standard will improve the safety of rental properties.
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No final decision on EPC requirements for short-term holiday lets
The government has said no final decision has been made over whether short-term holiday lets will be included in energy performance certificate (EPC) targets.
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Two-thirds of landlords plan to invest despite Budget concerns
Two-thirds of the UK’s landlords are still planning to invest in the PRS this year, even as uncertainty over tax and costs weighs on confidence, a new survey reveals.
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Councils given power to penalise landlords for unenforceable tenancy clauses
The government has confirmed councils will be able to act against unenforceable clauses in tenancy agreements under the Renters’ Rights Act.
From 1 May 2026, all fixed-term tenancies will be banned and turn into periodic tenancies.
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When will landlord rights be finally recognised?
“The Gardian published an interesting article, called ‘Are UK buy-to-let landlords dying out – and should we care?’ and it takes a fair and balanced view of what’s happening in the PRS.”
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