The rental market across the South East in 2026 is holding firm this summer. Demand remains above pre-pandemic levels, rents are continuing to rise, and the Renters’ Rights Act has now been in force since 1 May. For landlords in Kent, Sussex and Surrey, the picture is broadly positive – but it does require careful management
What the data shows
Nationally, the average rent for new lets in the UK reached £1,321 pcm in June 2026, a rise of 2.1% on the previous year. That headline figure, however, understates what is happening in many local markets. Rents are rising faster than the national average in 75% of local areas, driven by a shortage of available rental housing – with 25% fewer rental homes on the market now than before the pandemic.
According to Kent County Council’s April 2026 housing rents bulletin, the South East has seen average monthly private rents increase by 3.2% annually to March 2026 – ahead of the national average and a reflection of the region’s persistent supply-demand imbalance. Data from Homenicom puts the average rent across the South East at £1,409 pcm as of February 2026, around 2.5% above the UK average.
For landlords in our area, those figures translate to a market where well-presented, well-managed properties continue to let quickly and at strong prices.
Demand is high – but the nature of it has shifted
There were an average of 5.6 enquiries per rental home in May 2026, down from a peak of 15.5 in 2022. Competition for homes remains well above 2017-19 levels, however, and explains why rents are still largely rising.
The frenzy of 2022 and 2023 has eased. What remains is a structurally undersupplied market where tenants are still competing for good quality homes. A quarter of rental properties are let before reaching the open market – a figure that reflects how quickly well-managed properties move when they come available.
For landlords in commuter belt areas across Kent, Sussex and Sussex demand continues to be driven partly by buyers who cannot yet make the step to purchase or want to test out the area by renting first, ‘try before you buy’. Higher mortgage rates have kept would-be buyers in the rental market longer than anticipated, and with the Bank of England holding rates steady, that pattern is unlikely to change significantly before the end of the year.
South East rental market: why supply remains the central issue
Every region has fewer homes available to rent than before the pandemic, and this structural shortage will keep rents rising faster than they otherwise would. New investment in private rented homes remains low, and while available rentals are at their highest for this time of year since 2021, that improvement is from a very low base.
For existing landlords, this is a market that continues to reward those who manage their properties professionally and provide good quality housing stock. Void periods are low, tenant quality is generally high, and rental income continues to grow – albeit at a more measured pace than the double-digit rises of recent years
The Renters’ Rights Act: what has changed
The biggest shift for landlords this summer is regulatory rather than market-led. The Renters’ Rights Act 2025, which came into force on 1 May 2026, abolished the Section 21 no-fault evictions, introducing rolling periodic tenancies, a ban on rental bidding wars, enforces better standards of rental property along with evidence-based rent increases. Further measures will follow, including a new Private Rented Sector Ombudsman and a national landlord database.
For most landlords with well-maintained properties and good tenant relationships, the practical day-to-day impact is manageable. What the Act does change is the importance of having the right processes in place from the start of a tenancy – thorough referencing, clear documentation and consistent compliance.
Landlords who work with a professional letting agent are better placed to navigate those requirements and are able to act quickly when issues do arise. The Government are recognising a need for professional standards across the lettings industry and as such, using qualified agents to look after rental properties is key.
South East rental market outlook: what to expect for the rest of 2026
According to the latest Zoopla rental market report, rental inflation of 2% to 3% is forecast over the remainder of 2026 – which would mark the third consecutive year in which earnings have outpaced rents, continuing a gradual improvement in affordability that began in 2024.
That moderation is good news for tenant retention. It also suggests that the market is settling into a more sustainable rhythm after several years of exceptional growth – one where landlords with good properties and professional management will continue to perform well.
For those in coastal and commuter-belt locations, demand appears particularly strong. Kent, Surrey and Sussex sit firmly in that category. The fundamentals that drive rental demand in this part of the South East – connectivity to London, quality of life, relative affordability compared to the capital – remain intact.
Thinking about your rental property this summer?
Whether you are an existing landlord reviewing your portfolio or considering letting a property for the first time, our Lettings Team at Batcheller Monkhouse can advise on current demand, realistic rental values and what the Renters’ Rights Act means for your specific situation. Get in touch with your local BM office to start the conversation.
Thinking about your rental property this summer?
Whether you are an existing landlord or considering letting for the first time, our Lettings team can advise on demand, rental values and what the Renters’ Rights Act means for you. Get in touch with your local BM office to start the conversation.