Ask a tenant and they’ll tell you rents are still going up. Ask a landlord and they’ll tell you the boom is over. The strange thing about 2026 is that both are right — and the details matter a great deal depending on which side of the tenancy you’re on.

Here’s what the numbers actually say this summer, and what they mean in practice.

The headline: growth is cooling, not stopping

According to the Office for National Statistics, the average UK private rent rose 3.3% in the year to June 2026, reaching £1,388 a month — a growth rate that has held steady for several months. Industry indices tell a similar story: HomeLet’s July figures put the average new tenancy at £1,369, up around 4.3% on a year earlier, while Zoopla’s tracking of new lets suggests growth nearer 2%.

Compare that with the 8–10% annual increases of the post-pandemic surge and the direction is unmistakable. The market hasn’t crashed — it has hit what analysts are calling an affordability ceiling. Rents stopped racing upward not because landlords stopped asking, but because tenant incomes stopped being able to follow.

The regional picture is where it gets interesting

National averages hide the real story. London rents rose around 6% over the past year — still the fastest of any region — while the East Midlands climbed nearly 5% and the North East posted some of the strongest growth outside the capital. The Midlands broadly continues to outperform the national average, supported by strong employment, big-city amenities at non-London prices, and persistent undersupply of quality rental homes.

For Birmingham specifically, that undersupply is the defining feature. Well-presented, well-managed properties still let quickly and hold their value. What has changed is the frenzy: bidding wars are gone (and under the Renters’ Rights Act, now illegal), tenant competition has eased, and renters are noticeably more value-conscious than they were two years ago.

What this means if you’re a tenant

Some genuinely good news: you have more breathing room than at any point since 2021. Slower growth means the gap between advertised rents and what you’re currently paying has narrowed. Rent increases are now capped at once per year under the new rules, bidding above the advertised price is banned, and landlords can no longer operate blanket bans on renters with children or those on benefits.

That said, the shortage of good homes hasn’t gone anywhere — quality properties in popular areas still move fast. If you’re looking for a well-managed home in Birmingham, including supported accommodation, our tenants page explains what we have available and how to apply.

What this means if you’re a landlord

The lazy era is over; the professional era is paying well. With growth at 3–4% rather than 10%, returns now come from three places: occupancy (a void month costs you more than any rent rise gains you), retention (tenants comparing value will stay in well-maintained, responsively managed homes and leave the others), and cost control (compliance mistakes under the new legislation are the fastest way to erase a year’s yield).

Notably, the market data shows properties that are energy-efficient and professionally managed continue to attract and keep reliable tenants — while tired stock is starting to struggle. In a value-conscious market, condition is no longer cosmetic; it’s your pricing power.

If keeping occupancy high and tenancies compliant sounds like more work than you signed up for, that’s precisely what our property management service exists for — and for landlords who’d rather remove rent risk altogether, our landlord services include guaranteed monthly rent regardless of occupancy.

The honest takeaway

2026’s rental market rewards accuracy over ambition. Tenants have regained a little power; landlords who run their properties like a business — priced to the evidence, maintained properly, managed responsively — are still doing very well, particularly here in the Midlands. It’s the middle ground, the casually managed and optimistically priced, that’s getting squeezed.

Whichever side of the tenancy you’re on, if you’d like a straight answer about what your property should rent for — or what you should be paying — get in touch with the MKM Housing team.