Why now is a great time to be a landlord

There is a lot in the news about rental properties, and the market continues to evolve after a period of regulatory change. Landlords face rising costs and shifting demand, but there are plenty of reasons to be optimistic about 2026.

Despite the challenges, now is potentially a great time to become a landlord. Here’s why…

Demand for rental properties remains high across the UK, while supply is limited. There are more renters than available properties, putting landlords in a strong position to let quickly and achieve good levels of rent.

Looking at London as an example, there has been a 41% reduction in the number of homes available for rent since the pandemic. A combination of dwindling supply and the inability of many to buy a home for themselves means there are plenty of people looking to rent and a smaller pool of available properties.

Demand outstripping supply leads to an increase in rent, which is positive news for landlords and their long-term returns. Currently, rental properties in the North-East of England are providing the highest average yield in the UK at 7.9%. The East of England is lower at 5.6%, but this is still a healthy return on investment for landlords.

The first step when you become a landlord is usually the purchase of a buy-to-let property. Mortgage affordability is crucial, and recent rising interest rates have pushed up mortgage payments for landlords. While this has been challenging, rates recently fell again, reducing those borrowing costs.

While some sources expect rates to fall further later in the year, it’s difficult to predict what will happen in terms of interest rates, especially with the war in the Middle East. However, accessing buy-to-let mortgages is certainly possible and worth investigating for would-be landlords.

Changes to interest rates are crucial to many landlords and directly impact return on investment. That said, an increase in interest rates does not necessarily make letting a property unprofitable. Setting an appropriate rent, which is possible thanks to high demand for properties, can still lead to attractive returns.  

Setting the right rent can feel tricky, but it’s worth noting that the average rent in April 2026 was £1,325, up 2.1% since last year.
 
In England and Wales, there is no legal cap on how much you can raise rent. However, it must be ‘fair and realistic’, i.e. in line with other similar properties. You can also only raise rent once per year and follow the correct legal process and notice procedures. Tenants can also appeal any increase via an Independent Adjudicator if they feel the level of increase being proposed is unreasonable.

There have been significant challenges for landlords recently, including:

However, keep the bigger picture in mind. If your property can achieve a decent return, it will continue to make you money. Keep an eye on the market to ensure your investment works for you.

Making the most of the current climate is down to strategy:

There are some great opportunities to be found. Rental demand is high, putting you in a strong position, and if you keep informed, there are plenty of reasons to remain optimistic.
 
At Beresfords, we’re experienced in local Essex property markets and are here to support both landlords and tenants. If you’re looking for a buy-to-let, in search of a tenant, need help with property management or just have a few questions, please get in touch. Our friendly team will be happy to help.

References:
[i] https://www.unbiased.co.uk/discover/mortgages-property/buy-to-let-renting/uk-rental-market-are-landlords-or-tenants-better-off-right-now [Accessed 8/5/26]
[ii] https://inform.dataloft.co.uk/national [Accessed 8/5/26]
[iii] https://www.zoopla.co.uk/discover/property-news/best-buy-to-let-locations/ [Accessed 8/5/26]
[iv] https://www.unbiased.co.uk/discover/mortgages-property/buy-to-let-renting/uk-rental-market-are-landlords-or-tenants-better-off-right-now [Accessed 8/5/26]
[v] https://hoa.org.uk/advice/guides-for-homeowners/for-owners/mortgage-rate-forecast/ [Accessed 8/5/26]
[vi] https://hoa.org.uk/advice/guides-for-homeowners/for-owners/mortgage-rate-forecast/ [Accessed 8/5/26]
[vii] https://inform.dataloft.co.uk/national [Accessed 8/5/26]