The rental market remains active in May 2026, but conditions are changing. Demand is still strong, rent growth has eased, and tenant expectations are rising. Here is what landlords should be thinking about now.

The UK rental market is entering a period of significant change, with new research suggesting that tenants could face increased housing costs from 2027 as landlords respond to upcoming tax changes. Combined with the wider economic backdrop shaped by interest rate decisions, this signals a pivotal moment for both landlords and renters across UK.

Rental growth has eased, but tenants are still searching carefully and landlords need to stay on top of pricing, compliance and property standards as the summer moving season continues.

The Bank of England has once again opted to hold its base interest rate at 3.75%, marking the fourth consecutive pause in monetary policy. While widely expected, this latest decision carries significant implications for homeowners, landlords, buyers and sellers across the UK property market.