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Claire Pile MARLA, Partner and Head of Residential Lettings, comments:
The residential lettings market across the South West continues to adjust to changing conditions, but one thing remains consistent: demand for good-quality rental homes is still strong, while the supply of available properties remains limited.
We are seeing the most sustained demand in the £800 to £1,200 pcm price range, with two and three-bedroom homes in towns and cities proving particularly popular. Average tenancy lengths are now exceeding three years, and with fewer properties returning to the market between tenancies, competition for available homes remains healthy.
Affordability is becoming an increasingly important factor for many tenants. While there is still a strong desire to move, household budgets continue to be stretched, which has led to some softening at the upper end of the market, particularly for properties let at more than £1,500 pcm. Recent legislative changes have also presented challenges for some tenants, especially those who previously relied on paying rent in advance to strengthen their application.
Looking at the longer-term picture, rental values have increased by around 45% over the past decade, outstripping both wage growth and increases in benefit rates. This has supported stronger yields for many landlords and reinforced the appeal of residential property as a long-term investment. The average rent across the South West is now around £1,220 pcm, compared with approximately £1,150 pcm across the UK, excluding London. Whilst rents are still increasing, annual growth has moderated to around 2.4%, suggesting the market is beginning to stabilise. In our experience, regular rent reviews with incremental increases remain the most effective approach for landlords.
Although the Renters' Rights Act came into force on the 1st of May 2026 and prompted some concern among landlords, many have reported little immediate impact on tenant behaviour. In fact, we are increasingly seeing tenants choose to stay in well-maintained properties that meet their needs, rather than moving frequently.
Forward planning is more important than ever, particularly when managing notice periods with increased timelines potentially impacting the risk of void periods. Whether seeking possession or reletting the property being proactive is key. There are also new compliance requirements that landlords need to be aware of, as failing to follow the correct procedures could affect their ability to regain possession in the future.
As always, it is important not only to understand what is happening in the market, but also to ensure your property remains fully compliant with the latest regulations. With 25 offices and locations across the region, we are able to draw on real, evidence-based local insight to provide practical, tailored advice. Whether you are considering letting a property, reviewing your investment, or simply need guidance on an existing tenancy, we are here to help.
For expert advice, please contact your local Stags office.
