The February rental market: Tenant demand, average rents and 2026 trends

February provides landlords with valuable insight into rental market dynamics as activity begins building towards the traditionally busier spring period.

No. 14627 from our magazine|2 min read| Published in Magazine on 16 January 2026 by our Marketing Team

Understanding current demand patterns, rent level movements, and emerging trends helps landlords position their properties effectively for the year ahead.
Demand patterns emerging
Tenant activity typically increases during February as people plan moves for spring and summer. Professionals seeking relocations for new roles often begin searching several months ahead of required move dates, creating early momentum in the market. Families planning moves that align with school terms also commence property searches during this period.
The demand profile varies significantly by location and property type. Urban centres with strong employment sectors tend to see consistent demand throughout the year, with February marking the start of increased activity rather than a dramatic shift. Locations with seasonal employment patterns or student populations experience more pronounced seasonal variations.
Properties offering features aligned with current tenant priorities see stronger interest. Energy-efficient homes with lower running costs attract particular attention as tenants become increasingly conscious of utility expenditure. Well-connected locations supporting flexible working arrangements continue appealing to professionals balancing office attendance with home working.
Rent level considerations
Rent levels entering 2026 reflect the supply and demand balance within local markets. Areas where available properties significantly exceed tenant numbers typically see more modest rent growth or stabilisation, whilst locations with limited supply relative to demand continue experiencing upward pressure on rents.
Landlords setting rent levels for new tenancies or renewals should research comparable properties within their immediate area. Properties of similar size, condition, and location provide the most relevant benchmarks for determining appropriate rent. Online portals display current asking rents, though these represent advertised rather than achieved figures.
The relationship between rent level and void periods requires careful consideration. Properties priced slightly below market peak often let quickly with minimal void time, potentially delivering better annual returns than higher-rent properties experiencing extended vacancy periods.
Location-specific dynamics
Regional variations in rental markets mean national trends provide limited guidance for individual property decisions. Cities experiencing employment growth typically see stronger rental demand than areas with declining job opportunities. Transport infrastructure improvements can substantially affect local rental markets as they enhance connectivity to employment centres.
New-build developments entering the market affect local supply dynamics and can increase competition. Landlords in areas experiencing significant residential construction should monitor how this influences rent levels and tenant expectations.
Property type trends
Tenant preferences continue evolving, with certain property types experiencing stronger demand than others. Well-specified apartments in convenient locations appeal to young professionals, whilst families prioritise houses with outdoor space and proximity to schools.
Properties offering dedicated workspace increasingly appeal to tenants whose roles involve regular home working. Even modest provision such as space for a desk can enhance appeal compared to properties lacking this flexibility.
Looking ahead through 2026
Several factors are likely to influence rental markets during 2026. Legislative changes affecting the private rented sector, interest rate movements impacting buyer affordability, and ongoing housing supply pressures all play a role in shaping tenant demand.
Energy efficiency requirements and awareness of running costs are expected to continue influencing property appeal. Landlords investing in energy performance improvements may gain a competitive advantage in attracting quality tenants.
Demographic trends, including population growth and changing household formation patterns, continue to create sustained rental demand in certain locations, particularly those benefiting from infrastructure investment and employment growth.
Positioning for success
Landlords who understand local market dynamics and position properties to meet genuine tenant requirements typically achieve better outcomes than those relying on national assumptions. February provides an opportunity to assess how your property compares to current competition and whether adjustments to specification, presentation, or pricing could improve letting prospects.
Properties meeting tenant expectations around condition, location, and value typically let promptly to reliable tenants, supporting strong performance throughout 2026.
Assess your property’s market positioning today