Rental Market Update: What Q1 2026 Means for Renters and Landlords in Wales
The Welsh rental market has started 2026 on a steadier footing, with new data showing a clear easing in rental price growth across Great Britain. According to Rightmove’s Rental Trends Tracker Q1 2026, the average advertised rent outside of London has remained flat quarter-on-quarter, marking the first time since 2017 that rents have not increased at the start of the year.
While Wales has followed this more balanced national trend, the data also highlights why the region continues to appeal to landlords and what tenants can expect as the market settles.
A More Balanced Start to the Year
Nationally, average advertised rents outside London held at £1,370 per calendar month in Q1 2026, with annual growth slowing to +1.6%, the lowest level recorded since 2018.
This easing reflects a rental market that is gradually becoming more balanced, driven by:
- An increase in available rental homes
- Slightly reduced demand from tenants
- Greater affordability pressures limiting how far rents can rise
For Wales, this national picture closely mirrors local conditions, with competition between tenants softening compared with recent years and landlords becoming more price‑conscious when bringing properties to market.
Wales Remains Attractive for Landlords
Despite slower rental growth, Wales continues to deliver strong rental yields. Rightmove data shows that average landlord yields in Wales stood at 7.0% in Q1 2026, above the Great Britain average (excluding London) of 6.5%.
This combination of:
- More modest property prices
- Consistently strong tenant demand
- Improving stability in the rental market
means Wales remains an appealing option for both established and first-time landlords looking for sustainable, long‑term returns.
More Choice for Tenants
One of the keys shifts this quarter has been an improvement in rental supply. Across Great Britain, the number of homes available to rent is now 3% higher than a year ago and at its highest level for this point in the year since 2021.
As a result:
- The average rental home now receives eight enquiries, down significantly from 11 a year ago and 29 at the 2022 peak
- Around 26% of rental listings are now seeing price reductions while advertised, the highest level recorded for this time of year since records began
For tenants in Wales, this means greater choice, less competition, and more opportunity to secure well‑priced, well‑presented homes, particularly when acting early.
Advising Landlords in a Changing Market
With homes taking slightly longer to let, pricing correctly from the outset has become increasingly important. Many landlords across Wales are now focusing on:
- Securing reliable, long-term tenants
- Avoiding void periods
- Keeping rents competitive rather than testing upper limits
This more measured approach is especially relevant ahead of upcoming legislative changes, including the Renters’ Rights Act coming into effect on 1 May 2026, although Rightmove notes there has been no immediate or dramatic landlord response so far.
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