Rents are at a record high and some landlords who planned to sell are reletting instead. Here are the latest figures, and how to test the decision with your own numbers.
Updated 15 October 2026
The short version
- Rents hit another record in September 2026: £1,387 a month across the UK, up 3.3% in a year (HomeLet).
- In London, growth in asking rents has picked up from 0.8% to 2.9% a year, and Chestertons says one in four landlords who put a London home up for sale relet it instead.
- Most landlords still say they plan to sell some or all of their properties, but the share planning to hold has risen.
- Rising rent alone rarely decides it. What usually tips it is how fast you think prices will grow, your capital gains tax bill, and the April 2027 tax rise. Run your own numbers in the sell or keep calculator, which now includes rent rises.
What the latest figures say
| Measure | Latest figure | Source |
|---|---|---|
| Average UK rent | £1,387 a month, up 3.3% in a year | HomeLet, September 2026 |
| Average rent, Greater London | £2,272 a month, up 3.3% in a year | HomeLet, September 2026 |
| Fastest-rising regions | Northern Ireland and the South West, both up 5.4%. Wales was the only region down, by 0.4% | HomeLet, September 2026 |
| London asking rents | Growth up from 0.8% a year at the end of 2025 to 2.9% in Q2 2026 | Rightmove, via Chestertons |
| London landlords who listed for sale | One in four relet the property instead | Chestertons, October 2026 |
| Landlords planning to keep their portfolio the same size | 27.6%, up from 22.8% in the spring | Property118 survey of 1,654 readers, October 2026 |
| Landlords who'd raise rents if taxes rise | 64% | Pegasus Insight, October 2026 |
Two points of caution. Surveys of landlords are self-selected, so treat them as a mood check rather than a count. And a national average hides big local differences: check yours in the average rent checker or on your area's rent page.
Why some landlords are changing their minds
- Higher rents, flat prices. In much of London and the South East, sale prices have barely moved while rents have risen. That pushes yields up and makes selling less attractive.
- The tax bill on selling. Capital gains tax is 18% or 24% on the gain, due within 60 days. On a property bought ten or more years ago it can take a large slice of the proceeds.
- Selling with tenants is slower. Under the Renters' Rights Act you can't use the selling ground in the first year of a tenancy, and you must give four months' notice. Selling with the tenant in place is usually quicker but at a lower price.
- Fewer rentals, more demand. With landlords leaving, tenant enquiries are up and good homes let quickly.
Why many still plan to sell
- The April 2027 tax rise. Rental profit will be taxed at 22%, 42% and 47%, two points more than now. The 2027 tax changes guide shows what that means in pounds.
- Mortgage costs. Bank Rate is 3.75%, with the next decision on 5 November. Fixes taken out at 1% to 2% are still rolling off. See the interest rate guide.
- New rules and paperwork. The Renters' Rights Act, Making Tax Digital from April 2026 for larger landlords, and the landlord database in 2027 all add time and cost.
Run your own numbers in three steps
- Check your rent against the local average. Use the average rent checker. If you're well below, there's room for a rise. If you're above, a rise is more likely to be challenged.
- See what a rise would do after tax. Put the new rent into the Section 24 calculator to see what you keep under the 2027 rates.
- Compare selling now with keeping. The sell or keep calculator works out your cash after capital gains tax today, against the rent after tax plus a later sale. Change the rent rise and price growth to test both views.
Worked example
A landlord earning £45,000 owns a flat worth £300,000, bought for £185,000 including fees, with £10,000 of improvements. The rent is £1,350 a month, running costs are £3,200 a year, and there's a £140,000 mortgage at 5%. Keeping it for five years, with prices growing 3% a year:
| Rent rise each year | Rent after tax over 5 years | Better off keeping by |
|---|---|---|
| None | £15,670 | £22,885 |
| 3% | £18,575 | £25,790 |
| 5% | £20,609 | £27,824 |
Rising rents add about £3,000 to £5,000 over five years. Price growth matters far more: with 3% rent rises, keeping only wins if prices grow by more than about 0.9% a year. If you expect prices to stay flat, selling now comes out ahead, even with the rent rising. Selling now would leave £130,960 in cash after £23,040 of capital gains tax.
If you keep: raising the rent the right way
In England, rent can only go up once every 52 weeks, using a Section 13 notice on Form 4A with at least two months' notice. Tenants can challenge a rise at the First-tier Tribunal, which can set a lower rent if the market rent is lower, but never a higher one. A rise in line with local rents is far less likely to be challenged than a jump to the top of the market. The rent increase calculator gives the earliest legal date.
If you sell: what to plan for
- Report and pay capital gains tax within 60 days of completion. Our capital gains tax guide covers what you can deduct.
- Selling after 6 April gives you a new £3,000 allowance and, if your income is lower that year, more of the gain at 18%.
- To sell with vacant possession, check the Section 8 selling ground: four months' notice, and not in the first year of the tenancy.
Questions landlords ask
Are UK rents still going up?
Yes. HomeLet's index put the average UK rent at £1,387 a month in September 2026, up 3.3% in a year. Growth is slower than the double-digit rises of 2022 and 2023, and varies a lot by region.
Should I sell my buy-to-let now?
It depends on your capital gains tax bill, your mortgage, your tax band from April 2027 and how fast you expect prices to grow. Rising rents help keeping, but price growth usually matters more. The sell or keep calculator compares both with your own numbers.
How much can I put the rent up by?
There's no cap in England, but you can only raise it once a year with a Section 13 notice. If the tenant challenges it, the tribunal looks at the open market rent, so a rise in line with similar local homes is the safest.
Are landlords leaving the market?
Many say they plan to. In Property118's October 2026 survey, 65.6% intended to sell some or all of their properties within three years. But the share planning to hold rose, and Chestertons found a quarter of London landlords who listed for sale relet instead.
Sources
- Landlord Today: Rents reach another record high (HomeLet, September 2026)
- Property118: London landlords return to PRS as rental growth gathers pace (Chestertons)
- Property118: Landlord sentiment survey Q3 2026
- Property Investor Today: Two-thirds of landlords will increase rents if taxes rise (Pegasus Insight)
- GOV.UK: Guide to the Renters' Rights Act