Navigating the UK Property Market in Early 2026: Practical Guidance for Landlords

Understanding the Current Market Landscape

The UK property market has shown resilience in early 2026, with listings and net sales surpassing pre-COVID levels. However, sales-agreed and sell-through rates lag behind previous years, and a significant 47% of sales agreements are withdrawn. This high withdrawal rate mainly results from property overvaluation and lengthy sole agency agreements that can lock sellers into unrealistic pricing.

Meanwhile, the rental sector experiences a moderate increase in demand and rents, reflecting ongoing housing needs and presenting opportunities for landlords.

Why This Matters to Landlords

For private landlords managing sales and lettings, these trends highlight the importance of realistic pricing and flexible agency agreements to avoid prolonged sales and withdrawals. Overvaluation deters buyers and increases market time and costs.

Lengthy sole agency agreements—often over 20 weeks—restrict landlords’ ability to switch agents or renegotiate pricing, which can stall sales and affect portfolio liquidity.

In rentals, the moderate rise in demand and rents allows landlords to review rent levels while balancing tenant retention and competitiveness.

Practical Implications Across Landlord Profiles

• Single-unit landlords: Prioritise accurate pricing and avoid long sole agency contracts that may delay sales.
• HMO landlords: Maintain clear communication about rent changes and market conditions due to tenant complexity.
• Portfolio landlords: Benchmark agent performance and pricing strategies to ensure competitiveness and reduce fall-throughs.
• Accidental landlords: Seek professional advice on pricing and agency agreements to avoid costly errors.

Recommended Immediate Actions

1. Review and adjust property valuations: Use current market data and comparables to set realistic prices, reducing withdrawal risks.
2. Reassess sole agency agreements: Limit durations to under 20 weeks where possible; include clauses for valuation reassessment or termination if sales targets aren’t met.
3. Conduct agent training: Ensure agents understand current valuation techniques and market trends to improve advice and pricing.
4. Utilise benchmarking tools: Implement platforms tracking agent performance and pricing to identify underperforming listings and adjust accordingly.
5. Enhance communication: Keep landlords and tenants informed about market conditions, expected timelines, and potential delays.
6. Monitor rental market trends: Regularly review local supply and demand to set competitive rents and minimise void periods.

Planning Next Steps

Landlords should schedule portfolio reviews to assess valuations and agency agreements. Engage with letting agents about market conditions and tenant rent levels.

For sales, discuss flexible, shorter sole agency terms with clear exit clauses to reduce withdrawal risks. Implement regular check-ins for market feedback and pricing adjustments.

How Rentals & Sales Can Support You

Our team offers portfolio reviews, compliance audits, and pricing consultations tailored to landlord profiles. We help benchmark properties, advise on agency agreements, and support tenant communications to improve rental income and sales outcomes.

Compliance Disclaimer

This article is for informational purposes only and does not constitute legal or financial advice. Landlords should consult qualified professionals for advice tailored to their circumstances.