London Rental Property Outlook 2026 | MIH London Property Management

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info@mihproperty.co.uk

Stringent rules, higher expectations, and the case for proactive management

As we step into 2026, the direction of travel for London rental property management is clear: stronger regulations, higher demands, and a growing emphasis on organised, well-evidenced day-to-day management.

This year is unlikely to bring any more dramatic shifts and London rental property remains as sought-after as ever, but the focus will be on the practicalities of managing residential, block and commercial assets, where compliance, transparency and service quality increasingly drive performance – and success.

RESIDENTIAL LETTINGS

In the residential lettings market, the most significant change is the move toward a new tenancy framework under the Renters’ Rights Act, expected to take effect in May 2026. The abolition of Section 21 and the greater reliance on Section 8 grounds for eviction, will place more weight on the quality of tenancy onboarding, documentation and communication throughout the tenancy lifecycle.

For landlords and managing agents, this translates into a more process-driven approach: sharper referencing, clearer record-keeping, proactive inspections, and consistent handling of arrears and anti-social behaviour. The operational burden will increase, but so will the importance of professional management that is structured, compliant and responsive. AI can help to take up some of the additional administration for those on the ball.

At the same time, rent growth is widely expected to be more measured than in recent years, (around 2 – 4%), with forecasting pointing to a market that is stabilising, even as supply constraints persist in many parts of London. This can be helpful for longer-term planning, but it also means that maintaining occupancy and reducing avoidable vacancies remains a high priority to manage revenue.

Effective turnaround management, realistic pricing strategies, and a clear approach to maintenance will matter. Alongside this, energy efficiency remains a strategic issue. While the current minimum domestic standard is still EPC E, government plans to reform EPC methodology in 2026 and raise minimum standards over time means that Landlords and owners might want to treat 2026 as a planning year for upgrades, rather than waiting for compliance deadlines to arrive.

BLOCK MANAGEMENT

Block management continues to be shaped by the long tail of building safety reform and the rising scrutiny applied to service charges and major works. Across London, leaseholders are becoming more engaged and demanding of clarity on costs, procurement and time management. Our response is to strengthen governance: produce service charge reporting that is timely and easy to understand, maintain clear audit trails for procurement and contractor performance, and manage consultations and major works programmes with care and consistency.

Building safety obligations and associated costs remain a sensitive area, and the ability to demonstrate compliance and fair process is increasingly important for maintaining confidence and reducing tenant disputes.

We work closely with both Directors and leasees to ensure that they are part of the process, engaged and clear about what is happening and when. This is vital to maintain effective block management in 2026.

COMMERCIAL

In the commercial property arena, the market is somewhat polarised. Better-quality, well-located assets are in higher demand generally, while older stock faces pressure to modernise. Meanwhile, tenants continue to prioritise operational reliability and workplace quality i.e. how well a building functions day to day.

Sustainability and energy performance is a priority, with uncertainty around the potentioal for future tightening of standards. A notable expectation in the market is that green obsolescence will affect older premises. It is therefore important to take steps to keep abreast of changes. 2026 is the time to review plans that consider compliance, maintenance, modernisation and leasing strategy – cohesively – in order to future proof assets and investments.

OUR STRATEGY FOR 2026

For MIH Property Management, we will continue to focus on doing the fundamentals exceptionally well: disciplined compliance programmes, preventative maintenance planning, clear service charge governance, and consistently high service standards across every interaction. In a year likely to reward professionalism and transparency, well-managed properties should benefit from stronger tenant retention, fewer avoidable disputes and better long-term asset performance.

In summary, the environment is more demanding, but it also favours those who manage with clarity, evidence and care… MIH’s strong suit. And that is surely a firm basis for a positive year ahead!