Rental Market Update: A more balanced market emerges in 2026
The UK rental market began 2026 on a more balanced footing, with asking rents levelling off, more homes available and less competition between tenants, according to Rightmove’s Q1 Rental Trends Tracker.
After several years of rapid rental growth and intense competition, the latest figures point towards more measured market conditions for both landlords and tenants.
So, what’s changing - and what does it mean for the rental market across Sheffield, Chesterfield and the surrounding areas?
What’s happening in the rental market?
The headline figure is simple: rental growth has paused.
For the first time since 2017, average advertised rents outside London remained unchanged quarter-on-quarter at £1,370 per calendar month. They were still 1.6% higher than a year earlier, showing that rental values remained resilient despite the shift in market conditions.
At the same time, the balance between supply and demand continued to improve:
The number of available rental properties was 3% higher than a year earlier
The average rental property received eight enquiries, down from 11 a year earlier and 29 at the 2022 peak
26% of rental listings had their asking price reduced — the highest proportion Rightmove had recorded for this time of year since tracking began in 2012.
In simple terms, tenants have more choice and landlords need to think more carefully about pricing, presentation and positioning.
This isn’t necessarily a slowdown. It’s a more balanced market.
What about the Renters’ Rights Act?
At the time of publication, landlords were also preparing for major changes under the Renters’ Rights Act 2025, with key reforms due to take effect from 1 May 2026.
Despite the approaching changes, Rightmove’s Q1 data showed no sudden increase in rental supply or significant withdrawal from landlords. Available stock had risen gradually, while buy-to-let lending data also showed a modest rise in new loans and an 18% year-on-year increase in remortgaging.
The picture was therefore one of gradual adjustment rather than an immediate reaction, with landlords appearing to take a more considered, longer-term approach.
Editor’s update: The main tenancy reforms under the Renters’ Rights Act came into force in England on 1 May 2026, including the move to assured periodic tenancies and the end of Section 21 possession notices for private assured tenancies.
What does this mean for landlords?
For landlords, a more balanced rental market creates opportunity - but it also makes the fundamentals increasingly important.
Demand remains healthy, but tenants have more choice and slightly less urgency. That means getting the rental value right from the outset, presenting the property well and offering a home that stands up against the competition.
There was also a positive picture for rental yields. Rightmove recorded an average landlord yield of 6.5% across Great Britain excluding London, rising to 7.2% in Yorkshire & The Humber and 6.7% in the East Midlands — particularly relevant to landlords investing across Sheffield, Chesterfield and the wider Redbrik region.
For landlords with existing long-term tenants, this is also a good time to review the condition and performance of the property.
Maintaining a rental home - and making sensible improvements when required - can help retain good tenants, protect the asset and ensure the property remains competitive when it next comes to market.
What does this mean for tenants?
For tenants, conditions are beginning to feel more manageable.
There are more homes available, fewer enquiries competing for each property and potentially a little more time to consider whether a home is right.
Affordability, however, remains important. Average asking rents were still higher than a year earlier in Q1, meaning tenants are likely to remain selective and place greater emphasis on quality, value and long-term suitability.
A more balanced rental market
The key takeaway from Rightmove’s Q1 report is balance.
After several years of intense competition and fast rental growth, the market is moving towards more sustainable conditions. For landlords, that places greater emphasis on pricing, presentation and long-term Asset Management. For tenants, it brings greater choice and a more measured search.
At Redbrik, our Lettings & Asset Management team works with landlords across Sheffield, Chesterfield, Dronfield and the surrounding areas to understand local rental demand, position properties effectively and protect their investment for the long term.
You can read the full rental report here
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