In line with what we’re seeing locally, recent reports from Zoopla and HomeLet highlight the continued strength of rental values, with a combination of limited supply, ongoing demand and changing conditions across the private rented sector supporting rental growth.
For landlords across North Hampshire, Surrey and Berkshire, the figures provide an excellent reminder of the ongoing value of well-managed rental property.
Rental values Continue to Rise in the South East
Zoopla’s Rental Market Report for June 2026 found that the average rent for a new let in the South East was £1,391 per month, representing annual rental growth of 1.6%. Despite this being below the national average growth rate of 2.1%, the South East remains second only to London as one of the UK’s highest-value rental regions.
Importantly for landlords, Zoopla found that the headline national figure does not tell the whole story. Rental growth was faster than the national average in three-quarters of local rental areas, demonstrating how much conditions can vary between individual locations and property types.
This is particularly relevant for landlords. Rather than relying on broad regional averages, understanding the achievable rental value of an individual property is increasingly important.
For landlords in the South East, where rental values are already among the highest in the country, this continued upward movement is encouraging.
Shortage of Rental Property Continues to Support Rental Prices
One of the key factors behind the rental market remains the balance between supply and demand.
Zoopla reported in June that every UK region had 20% to 30% fewer homes available to rent than before the pandemic. This shortage of available property continues to limit choice for tenants and puts upward pressure on rental values.
Whilst tenant demand has eased from the exceptionally high levels seen in previous years, the shortage of available homes means that there remains a significant need for good-quality rental property.
For landlords, this creates an opportunity to review whether their property is achieving its full rental potential, particularly where rents have not been reviewed recently.
What Does This Mean for Landlords?
The latest figures suggest there are still opportunities for landlords to benefit from rental growth, but achieving the right balance is important.
A rent increase needs to reflect the property, its location and current local demand, as well as what tenants are realistically able to pay. Setting the rent at the right level can help landlords maximise their income while maintaining a good tenancy and avoiding unnecessary void periods.
This is where local market knowledge becomes particularly valuable. Rental values can vary considerably between towns, neighbourhoods and even individual properties. A South East average can provide useful context, but it cannot replace an assessment of the individual rental property and the demand for that type of home locally.
At Mackenzie Smith, our Letting teams monitor local rental values and tenant demand to help landlords understand what their property could realistically achieve in the current market.
For landlords who have not reviewed their rent recently, now could be a good time to understand how their property compares with similar homes currently available and whether there is scope to increase the rental return.
Thinking About Letting Your Property?
Whether you are an existing landlord considering a rent review or are thinking about letting a property for the first time, our local lettings teams can provide expert advice based on current market conditions and local demand.
Contact your local Mackenzie Smith office for advice and guidance on on 01252 514000, or arrange a free rental valuation to find out what your property could achieve in today’s market.
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