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This is Chubby Wallet. The newsletter that teaches you how to profit from property trends before they go mainstream..

Here's what’s in store..

• Housing supply continues to rise

• New landlord requirement from 1st May

• North east sees highest rent and price growth

LATEST DEVELOPMENTS

LISTINGS

Housing supply continues to rise

Fresh market data from property analyst Chris Watkin shows UK housing supply continuing to rise in early 2026, with listings running above both 2025 and pre-pandemic levels, while transaction volumes remain solid despite prices moving largely sideways.

The details:

• Total homes on the market reached roughly 243,000 listings so far in 2026, about 1% higher than the same point in 2025, 10% ahead of 2024, and 20% above the 2017–2019 pre-pandemic average.

• Weekly listing volumes are currently around 10% higher than long-term historical averages

• 167,000 homes have gone sold subject to contract (SSTC) year-to-date, about 12% higher than 2024, but 6% below the unusually strong 2025 market, which was heavily influenced by a stamp duty deadline on 31 March.

• At the start of February, the total number of homes on the market reached 663,000, the highest February level in more than a decade. That figure narrowly exceeded the 660,000 recorded on 1 February 2025.

• However, the sales pipeline is slightly weaker than a year ago. At the end of January 2026, estate agents had 422,067 properties sold subject to contract, compared with 433,030 a year earlier.

• Price reductions remain elevated but stable. Around 19,800 listings reduced their price in week 7, and 12.2% of homes saw reductions in January, slightly below the 2025 average of 12.8% but still above the longer-term norm of 10.7%.

• The fall-through rate where agreed deals collapse before completion is currently 20.2%, lower than the longer-term average of 24.2%, suggesting transactions are holding together reasonably well

Why It Matters

The UK housing market is currently being defined by rising supply rather than weak demand. Transactions remain healthy, fall-through rates are stable, and affordability is gradually improving as prices move sideways in real terms. The key variable for the rest of 2026 is whether the wave of new listings continues or begins to slow once landlord disposals run their course

RENTERS RIGHT ACT

New landlord requirement from 1 May

The Renters’ Rights Act introduces a new requirement from 1 May 2026 forcing landlords to provide tenants with a “written statement of terms” before an assured periodic tenancy begins with fines of up to £7,000 for non-compliance

The details

• The rule is created by Section 12 of the Renters’ Rights Act, inserting Section 16D into the Housing Act 1988.

• Landlords must give tenants the written statement before the tenancy is agreed, either inside the tenancy agreement or as a separate document.

• Failure to provide it allows local authorities to issue civil penalties up to £7,000.

• The exact format is defined in the draft Assured Tenancies (Private Rented Sector) (Written Statement of Terms etc and Information Sheet) (England) Regulations 2026, expected to be finalised in March 2026.

• The statement must include:

  • Parties: Landlord name, service address in England/Wales, and all tenant names.

  • Tenancy terms: Start date, monthly rent amount and due date, bill arrangements, deposit amount, and explanation of how rent increases work under Section 13 of the Housing Act 1988.

• Ending the tenancy: Minimum tenant notice period and confirmation that landlords must obtain a court possession order to end the tenancy.

• Safety obligations: Confirmation of legal duties under the Landlord and Tenant Act 1985 covering property repairs, habitability, electrical testing every five years, and annual gas safety checks.

• Tenant rights: Right to request pets under new tenancy rules and rights to request disability-related improvements under the Equality Act 2010.

Why It Matters

This new requirement mandates landlords to provide pre-tenancy disclosure documents. Those who treat it as an administrative formality risk enforcement fines (up to £7k), while tenants gain clearer legal grounds to challenge non-compliance on safety, rent increases, and tenancy termination.

MARKET TRENDS

RENTS AND PRICE RISES

North East sees strongest growth in rents

New data from the Office for National Statistics shows UK rents rising 3.5% in the 12 months to January 2026, while house prices increased 2.4% across 2025 confirming a market that is cooling but still growing modestly

The Details:

• The ONS rent index is heavily weighted toward existing tenancies (about 77%) rather than new lets, which explains why its figures tend to lag the sharp increases seen in asking rents (Source: Office for National Statistics).

• The North East saw the strongest increase at 8%, followed by the North West at 6%.

• London recorded just 1.1% growth, continuing its recent trend of lagging other regions.

• House price growth across the UK came in at 2.4% for 2025, according to the official annual figure published by the ONS.

• England recorded weaker growth at 1.7%, while Wales rose 5% and Scotland 4.9% (Source: Office for National Statistics).

• The North East recorded the strongest growth at 4.6%, narrowly ahead of the North West at 4.5%.

• The Midlands followed behind, while the South East recorded flat growth (0.0%) and London fell 1% year-on-year (Source: Office for National Statistics).

• Transaction activity has been dampened by stamp duty changes and weaker demand in London and the South East, leading many sellers to delay moving rather than accept lower prices.

• Property portal Zoopla reports that falling mortgage rates now below 4% on average for the first time since 2022 have helped sustain transaction volumes.

• Zoopla also estimates that 40% of homes listed for sale are now cheaper to buy with a mortgage than to rent, although the comparison excludes costs such as maintenance and insurance (Source: Zoopla).

• Both datasets converge on almost the same national price level: Zoopla estimates the average UK home at £269,900, while the ONS places it at roughly £270,000.

Why it matters

The data reinforces a pattern that has held for several years: price and rent growth shifting away from London and toward Northern regions. Housing inflation is now running below general inflation and regional divergence is becoming the defining feature of the UK property market.

That's it for this week folks. Each week we'll cover strategies, updates and insights to help you succeed in real estate. We love this stuff!

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