After an eventful five years, last year showed the first signs of Oxfordshire’s lettings market ‘normalising’ in terms of supply and demand inching back towards a balance. The Renters’ Rights Act (RRA) will be a primary driver of change in the 2026 rental market, with its implementation scheduled for 1st May. Despite the legislative changes, we anticipate Oxfordshire’s lettings market continuing to prosper, and with this in mind (and a caveat that we do not own a crystal ball), here is our view of the Private Rented Sector (PRS) for 2026:
RENTAL GROWTH
Though demand levels are starting to settle (in comparison with recent years), a small supply/demand imbalance remains, and so we anticipate rent increases returning to more normal levels following years of uncharacteristically high growth.
The RRA will limit rent increases to once per year, which falls in line with the typical current process of reviewing rents at renewal. Although the mechanism will change (annual rent reviews and Section 13 notices will replace renewals), rent increases will still be possible.
For new lets, the restriction on accepting offers over the advertised price (aimed at stopping ‘bidding wars’) will make accurate rent setting even more important. There may be a temptation for landlords to increase the initial asking price “just in case” but a good agent will be able to justify their proposed rent level based on current market factors.
The impact of the RRA on supply remains to be seen but, as we saw at the height of the pandemic, when demand outstrips supply, rents increase.
RENTAL DEMAND
According to ONS figures, net migration (the difference between the number of people moving long-term to the UK and the number of people leaving) has reduced significantly over the last three years, and as a result rental demand has started to ease nationally1. We have observed a similar trend locally (see graph) though it is worth noting that demand remains higher than it was in 2019. We anticipate rental demand remaining steady as people come to work or study in Oxfordshire.
In October the Government announced a £500m investment for new homes, infrastructure and business space for the Oxford to Cambridge Growth corridor, cementing this area as a global innovation hub which will continue to attract people. The investment includes the East West Rail line, which we included in our 2025 predictions. The rail line has been declared open, with a test train having completed its first run, and services due to commence in 2026.
A £120m investment to reopen the Cowley Branch line to passengers was also announced in October. The reopening of the line will connect communities in the east of the city to central Oxford and then directly onto London Marylebone. It will also connect four of Oxford’s growth areas along one route from ARC Oxford, The Oxford Science Park & the Ellison Institute of Technology, Oxford West End (next to Oxford Station), and Oxford North (near Oxford Parkway).
Reopening the Cowley Branch Line will bring wide-ranging benefits to Oxford and the surrounding area by unlocking thousands of new homes and could create over 10,000 new jobs, attracting more renters to the region.
INVESTING AND INCORPORATING
Interest rates have trended downwards in recent months, so we anticipate the PRS experiencing a period of stabilisation. This should also translate into more competitive rates on buy-to-let (BTL) mortgages, making property a viable investment and allowing landlords to plan for long-term returns. If you are refinancing, speak to our team who can put you in contact with expert mortgage advisers.
Over the last few years, the number of BTL properties held in a limited company structure has increased significantly, with recent figures putting this at around 700,000. This suggests that the sector is changing shape, and the upcoming legislative changes will continue this shift towards a more professionalised sector.
Well-advised, serious landlords who are focused on long-term returns rather than short-term gains will continue to succeed. Indeed, there are real opportunities for landlords looking to increase their portfolio in the coming year; speak to our team www.finders.co.uk/investment
PREPARATION IS KEY
The Government’s plans for rented homes to reach an energy performance rating of C (or above) by 2030 represents an opportunity for landlords to enhance the quality and value of their properties. It is wise to start looking ahead and assessing your properties now; by understanding the new requirements, taking advantage of any financial support, and planning strategically, the 2030 deadline can be met with confidence.
From April this year landlords with more than £50,000 in annual rental income will need to submit quarterly digital updates to HMRC under the Making Tax Digital for Income Tax policy. The threshold will reduce in the coming years (£30,000 in 2027 and £20,000 in 2028) so, again, it is wise to look ahead and speak to your accountant or ask your agent for advice.
THE RENTERS’ RIGHTS ACT
Change is coming in 2026, but this is not something that landlords providing a good property and service should fear. The Oxfordshire lettings market has shown resilience through many significant market shifts over the decades and although the lettings landscape will change, a good agent will be able to advise you accordingly. If you would like help understanding the upcoming changes, you can watch our video at www.finders.co.uk/rra
LOOKING AHEAD
There is no doubt that the increased compliance complexity that the RRA will bring will make self-management less attractive for some landlords. We have already seen a number of clients moving to our managed service where we will deal with compliance and day-to-day management of the tenancy helping to avoid fines and penalties.
Rental demand for quality property in Oxfordshire has always been strong and many people rely on the PRS (50% of homes in Oxford city are privately rented2). The Government’s commitment to investing in the region suggests that people will still want to come and live and study in this fantastic county which will support rental demand. For professional landlords providing quality rental properties, there remains plenty of opportunity for success in this ‘new’ market.
1 Rightmove Rental Market Update, October 2025
2 Oxford City Council, Renting a home in the private sector
