Why 2026 Could Be the Smartest Year Yet to Grow Your Rental Portfolio

2026 is shaping up to be a surprisingly strong year for UK landlords; particularly those who are planning ahead, managing their own properties, and looking to grow with strategy rather than speculation.

Despite ongoing changes in regulation, mortgage affordability and tax treatment, the fundamentals are looking strong: rental yields are rising, demand is solid, and landlords are adapting smartly - often by incorporating as limited companies and making data-driven decisions about where and how they invest.

At Emoov, we work with landlords who want to stay in control. No percentage commissions, no unnecessary upselling - just the tools you need to market, sell, or rent your properties yourself. And if you’re thinking of scaling your portfolio this year, now could be the time to act.

Here’s what’s happening in the market - and how to make the most of it.

Rental Yields Are Rising Across the UK

According to Fleet Mortgages’ latest Rental Barometer (Q4 2025), average rental yields across England and Wales have increased to 7.7%, up both quarterly and annually.

The North East continues to lead the way with yields at 9.6%, but regions like Yorkshire and the Humber, North West, and both Midlands regions are all averaging 8% or more. Encouragingly, even traditionally lower-yielding southern regions like the South West, South East, and Greater London posted annual yield gains - pointing to a more balanced market overall.

With rents continuing to rise and tenant demand still strong, landlords are benefiting from:

• Lower void periods
• Increased rental values
• Higher returns on investment, especially in key regional areas

This means your next property doesn’t need to be in London to deliver a solid return - in fact, venturing north or into emerging regional hubs could boost your yield without inflating your purchase costs.

Limited Companies Are Becoming the Go-To Structure

New data from Paragon Bank shows that nearly two-thirds (63%) of landlords plan to buy their next rental property through a limited company or Special Purpose Vehicle (SPV). This trend is especially strong among younger landlords, with 100% of 25 - 34-year-olds intending to incorporate their next purchase.

Why the shift?

Primarily for tax efficiency. Since the removal of mortgage interest relief in 2015 (Section 24), landlords holding properties in their personal names can’t deduct finance costs from their rental income - leading to higher tax bills.

Owning via a limited company allows:

• Mortgage interest to be claimed as a business expense
• Rental profits taxed at corporation tax rates (currently 25%)
• Easier transfer of ownership or inheritance planning

However, limited company ownership isn’t right for everyone. You’ll need to factor in:

• Additional accounting and compliance costs
• Possibly higher mortgage rates
• Potential stamp duty or CGT implications if transferring existing properties

If you’re managing your own lettings, make sure you speak to a specialist accountant before making the switch - but do consider it, especially if you’re planning long-term growth.

What Landlords Are Doing in 2026 - And Why It Matters

A separate survey by Lendlord shows:

• 66% of landlords are undertaking growth activity this year
• 23% plan to acquire more properties
• 58% are sticking to a long-term buy-and-hold strategy
• A surprising 33% said the 2025 Budget made them more likely to invest

This tells us that UK landlords are not backing off - they’re adapting. And those adapting the fastest are:

• Growing portfolios through SPVs
• Buying in higher-yield regions
• Refinancing or releasing equity to reinvest
• Modernising existing stock to meet EPC rules and boost rental value

In fact, Fleet Mortgages also found that:

• The average landlord borrower now holds 14 properties, up from 12 last quarter
• 76% of mortgage applications were from limited companies
• Purchase business made up over one-third of mortgage activity

Even first-time landlord applications remained solid, making up 11% of Q4 activity - suggesting strong interest from new entrants.

Self-Managing? Here’s How to Stay Ahead

If you're handling your lettings yourself, 2026 is a great year to take your next step - but be strategic. Here’s how:

• Do Your Due Diligence
  Use rental yield calculators, EPC ratings, tenant demand reports and local market data to choose the right areas and property types.
• Consider SPV Ownership
  Incorporating can offer long-term tax benefits, but seek professional advice to get it right.
• Use Smart Tools
  Digital platforms (like Emoov) can help you manage viewings, listings, compliance, and offers without costly agent fees.
• Focus on Tenant Retention
  High rents are only profitable if your tenants stay. Prioritise maintenance, clear communication and energy efficiency.
• Keep Refinancing on the Radar
  Fleet’s mortgage rates dropped slightly in Q4 - two-year fixes fell to 4.27%, and five-year fixes dropped below 5%. Shop around and consider remortgaging to unlock equity for further investment.

Emoov: Helping Landlords Stay in Control

Whether you’re:

• Listing a rental in a high-yield area
• Selling off an underperforming property
• Testing the waters on your next buy-to-let purchase

Emoov gives you the tools to do it yourself, on your own terms. No commission. No call centres. Just affordable, fixed-fee listings and professional services when you need them.

The Bottom Line

2026 presents a strong opportunity for landlords who are willing to adapt and invest wisely. With rising yields, better mortgage deals, and more flexible ownership structures like SPVs, there’s real potential to grow your portfolio - even in a tougher economic landscape.

Whether you’re just getting started or scaling up, now’s the time to act with purpose.

Ready to grow your rental portfolio? Emoov is here to support your next move - without the agent fees.

Image is from a property for rent January 2026. A well-presented ground floor apartment conveniently located within a short walk of Shrewsbury town centre. For more details see here.