Published on 3 Feb 2026
Demand in 2026 will remain present, but decidedly conditional. At lower and mid-range price points, needs-based demand will continue to underpin activity. Above that, particularly in the £10,000-per-month and super-prime segments, tenants are increasingly sophisticated, patient and willing to walk away. They are benchmarking hard, negotiating confidently and, crucially, refusing to overpay for anything that is not genuinely best in class. The days of tenants absorbing tired finishes or slow management responses at premium rents are over.
On the supply side, there is no meaningful rescue coming. While overall stock remains constrained, that constraint is being overstated and misunderstood. What the market actually lacks is high-quality, correctly priced rental product, not listings, per se.
Many landlords are still anchored to 2023–24 pricing assumptions that simply do not apply in today’s market. In 2026, that disconnect will increasingly manifest as longer voids, price reductions and ‘stale’ listings, particularly at the upper end. In value terms, this points to a year of flat headline rents but widening dispersion.
There is no credible case for broad-based growth in PCL rents in 2026. Instead, the market will reward execution and punish complacency. Well-prepared, realistically priced homes will let cleanly and hold value. Average or compromised stock will not, regardless of postcode.
For landlords, the message is blunt but necessary: pricing discipline and proper stewardship now matter more than scarcity. The market has moved on. Those who fail to move with it will feel the cost.
Peter Hermon-Taylor, managing director of lettings, Maskells