The UK rental market faces renewed upward pressure as tenant demand continues to grow while the availability of rental properties remains constrained. According to data published on October 8, 2026, by the Royal Institution of Chartered Surveyors (RICS), rising competition and a lack of landlord instructions are expected to push rental prices higher over the coming months.
Tenant Demand Accelerates Across the UK
The RICS September residential survey revealed a net balance of +23% of respondents reporting increased tenant demand. This marks the third consecutive month of growth for this metric, highlighting an escalating appetite for rental accommodation among UK households.
Conversely, landlord instructions-representing new rental properties coming onto the market-remained firmly negative. This widening gap between a growing pool of tenants and a shrinking supply of available homes intensifies market competition and leaves many prospective renters with limited options.
Rent Expectations Remain Elevated
Driven by persistent supply constraints, chartered surveyors anticipate further increases in rental costs. The survey found that a net balance of +37% of respondents expected rents to increase over the subsequent three months.
Although this figure moderated slightly from +44% in August, it remains notably higher than the +27% average recorded during the first half of the year. Industry experts note that ongoing mortgage costs, regulatory shifts, and affordability pressures continue to weigh on the wider housing landscape, preventing any swift relief for tenants.
Broader Housing Market Pressures
The challenges in the lettings sector mirror a broader period of adjustment across the UK residential property market. Higher borrowing costs, macroeconomic uncertainties, and fluctuating buyer sentiment have kept transaction volumes subdued in the sales market.
Tom Bill, head of residential research at Knight Frank, noted that higher mortgage costs continue to filter through the system, impacting both buyer confidence and transaction timelines. As market participants navigate these headwinds, analysts suggest that the private rented sector will remain a critical pressure point, with rental growth likely continuing to outpace general wage growth in many regions.
Looking Ahead
As policymakers, lenders, and industry bodies scrutinize the latest figures, the core message from the RICS survey remains clear. Without a substantial increase in rental supply, upward pressure on rents is expected to persist, directly impacting household budgets and housing affordability across the United Kingdom.
