Lettings Market Update May 2026

27 May, 2026

After a strong start to the year for the Southampton lettings market, activity has remained positive throughout the second quarter. Demand for good quality rental property continues to be healthy, whilst the level of available stock has remained relatively balanced, providing encouraging conditions for both landlords and tenants.

The first phase of the Renters Reform Act came into effect at the beginning of May, bringing changes to tenancy structures and notice procedures. Whilst there had been concerns that the legislation could prompt a significant number of landlords to leave the sector, this has thankfully not materialised, and confidence within the local market has remained steady.

Rental values continue to show gradual growth, although the pace of increases has become more sustainable compared with the sharp rises seen over the past year. With the new rent increase procedures now in force, it is important that landlords remain proactive when reviewing rental levels, as the updated regulations can present difficulties if not handled correctly. Allowing rents to fall too far behind current market value may make future adjustments more challenging, particularly where larger increases are later required. We would therefore encourage landlords to review their portfolios regularly and seek advice where needed. Our team is on hand to guide you through the process.

Field Palmer continues to believe that there remains a strong place in the market for professional small-scale landlords, particularly those who focus on well-presented, well-maintained properties that appeal to quality tenants and deliver reliable long-term returns.

If you are considering entering the rental market, or would like advice on your existing investment property, please contact Field Palmer Lettings on 023 8071 0402  or email us at lettings@fieldpalmer.com or request a rental valuation on our website here who will be delighted to discuss current market conditions, tenant demand, and likely rental values in your area.