South London Lettings: What we Expect in 2026

 2025 was wild.

There!

That might not be the most loquacious ‘year in review’ you’ll see from letting agents out there… but it is perhaps the most succinct and, to be fair, an inarguable summary of what was a tumultuous year for the sector.

Lettings – indeed, the property market in general; sales, lettings and commercial – faced drama after drama, and made headline after headline. It was exhausting.

From the end of a stamp duty holiday in March that front-loaded sales activity in the first quarter of 2025 as buyers rushed to complete purchases before the deadline, to persistent back-and-forth on the Renters’ Rights Bill, to a late-in-year Budget that left everyone on the hook until finding out that not a huge amount was really changing… the stories have been relentless. And so has the disruption.   

But we have come through it – as a property business, as a local community, as a society, as an industry… and now, we’re getting ready to welcome in the New Year.

Rather than looking back on what’s passed, we wanted to really take a look ahead at what we expect to see unfold, that will affect the way you let out properties in Crystal Palace and the surrounding area in 2026.

Tenancy timing will become less predictable

One of the biggest differences we expect to see emerging in 2026 is when properties become available.

With tenants moving onto rolling tenancies from May 1 and having greater flexibility to end their tenancy, the traditional, seasonal rhythm of the lettings market we’ve become so used to is likely to disintegrate.

Summer will still be busy – everyone likes moving when the weather is good, after all – but generally speaking, the date that tenants opt to move on could be spread more evenly across the year as people become able to make decisions based on their personal circumstances rather than fixed contract end dates – something that the Act was very much intended to facilitate.

For landlords, planning ahead is still important but harder to predict, and that means contingency planning might come into play. Void periods may not always align with historic trends, so flexibility could be key.

 

Letting agency fees will rise, driven by workload, not legislation alone

There’s no getting around it: managing property is becoming more labour-intensive.

The volume of administration involved in compliant lettings has increased significantly over recent years, and that trajectory isn’t slowing. As a result, we expect more agents to review and increase their fees in 2026 simply to reflect the time, staffing and systems now required to do the job properly.

For context, we’ve increased our management fee by just 1%, our first increase in five years – a decision driven by rising operating costs rather than the Renters’ Rights Bill.

 

A final surge in Section 21 notices before May

We really do anticipate an increase in Section 21 notices being served ahead of the changes in May.

Landlords have until late April 2026 to serve a Section 21 notice if they intend to use the current regime – and we think many will. Not a majority! But enough to wobble the market and create a sense of uncertainty and disruption for tenants.

For some landlords, this will be about future-proofing portfolios. For others, it will be tied to longer-term decisions around selling, restructuring, or stepping back from the market altogether.

It’s not a trend we welcome, encourage or endorse – it is just realistic to expect it.

 

Rents will continue to rise

While bidding wars are to be banned – or at least, the ability to accept offers above asking price – this doesn’t mean rental prices will suddenly stabilise.

Demand remains as strong today as ever, with supply constrained, and landlords still face higher costs – all the ingredients that tend to combine in the pot to push rents upward.

What will change is how rents are set.

Due to the change in legislation that prevents competitive bidding from pushing rents above the asking rent – arguably, finding market value – we expect to see properties listing at higher than market value rents, to allow that headroom.

That would mean that rents will rise as a result, because ultimately there is not enough supply coming through that gives tenants the choice they need to prevent that happening.

 

More administration, for everyone involved

Finally, there’s no escaping the paperwork.

From compliance checks to documentation, communication and record-keeping, 2026 will bring more administration across the board – for agents and landlords alike.

This is where professional management genuinely adds value: not just handling tasks, but reducing friction, avoiding mistakes, and ensuring that both sides of a tenancy are treated fairly and clearly, with all legal paperwork documented and filed.

Looking ahead with clarity

2026 will bring changes to the lettings market, but many come with a new framework.

In some ways people might think that makes things easier – and actually, from an agency point of view, we can at least partly agree.

But realistically, it is not about being easier, it is more the case that we have clear structures and frameworks to operate within. Not necessarily easier, but there is some relief in the clarity. What worries us is that the overseers, the tribunal systems, the ombudsman that has been promised, won’t be there or won’t be functioning – and that might lead to a lot of headbanging against brick walls.

Landlords who stay informed, plan smart and work with experienced professionals will be best placed to navigate the year ahead – a year which will bring opportunities.

Tenants, meanwhile, can expect a market that is more structured, more regulated, and ultimately more transparent – but which is no less competitive, and rents will increase.

As ever, our role is to sit in the middle – managing homes properly, treating people fairly, and keeping things moving smoothly as the landscape continues to change.