The rental market is in an unusual place right now — relatively calm on the surface, but with some significant forces building underneath. Here's a straightforward look at what the latest data shows and what it might mean for landlords locally.
The landlord exodus is slowing — but hasn't stopped
New research from lettings platform Goodlord, based on a survey of more than 1,200 landlords, paints a mixed picture. The rate at which landlords are leaving the private rented sector appears to be easing. Back in September 2025, 35% of landlords said they had sold or actively tried to sell part or all of their portfolio in the preceding year. That figure now stands at 24% — still a significant proportion, but a meaningful improvement.
The majority — 72% — are currently in a holding pattern, neither selling nor buying, as the market waits to see how the Renters' Rights Act plays out when it comes into force on 1 May.
The longer-term picture is harder to feel positive about. Only 44% of landlords expect to still be operating in the sector by 2031. A third don't expect to be landlords in five years' time, and a further 21% say they haven't yet decided. That means more than half of current landlords are either planning to leave or genuinely unsure whether they'll stay. With just 4% of landlords actively investing in new properties, the supply gap in the rental market is unlikely to close any time soon.
Yields are holding up
Against that backdrop, the income fundamentals for landlords who do remain in the market are looking reasonably solid. Fleet Mortgages' Q1 2026 Buy-to-Let Rental Barometer shows rental yields rising across every region of England and Wales on an annual basis, reaching a national average of 8.1% — up 0.7% year-on-year.
Greater London was the one exception, recording a slight quarterly dip. That's worth noting for Finchley landlords, though yields in the capital remain supported by strong and consistent tenant demand. The broader message from Fleet's data is that buy-to-let continues to generate meaningful income returns in the current environment, even if the financing picture has become more complicated.
On that point, March brought a sharp shift in mortgage market conditions. Rising swap rates — driven partly by geopolitical developments in the Middle East — triggered product withdrawals and rate increases across buy-to-let lending. Fleet's data showed improving rates through January and February, but that improvement largely reflects conditions earlier in the quarter rather than where the market is now. Purchase lending is expected to feel this most acutely as we move through Q2.
Rents: modest growth, with uncertainty ahead
Rental inflation across England in March 2026 stood at 2.4% year-on-year, according to the Goodlord Rental Index. That's considerably lower than the 4.6% recorded at the same point last year and currently sits below both consumer price inflation (3.2%) and wage growth (3.9%). The average rental cost in England is now £1,212 per month.
Void periods held steady at 22 days nationally in March — unchanged from February and not a cause for alarm, though worth monitoring as the Renters' Rights Act approaches.
William Reeve, chief executive of Goodlord, summed up the current mood well: the relative calm of recent months may simply be a holding pattern ahead of what the new legislation unlocks in May. A spike in notice periods, rent adjustments, and shifting tenant behaviour are all possibilities once the Act is in force.
For now, the most useful thing landlords can do is make sure they're across what the changes mean in practice — and plan accordingly.
Whatever your long-term plan is in the Finchley rental market, David Harris & Co is here for you. At David Harris & Co, we understand what makes Finchley unique. Whether you’re buying, selling, or renting, our local expertise ensures we can guide you to the best decisions for your needs. Ready to explore Finchley’s property market? Contact David Harris & Co for expert advice and a stress-free experience. Call us on 0208 346 9122 to get started. Let’s make Finchley your next home.
