UK Property Market Today: Renters’ Rights Act Implementation Looms as BoE Holds Rate at 3.75% Ahead of 30 April Decision on 7 April 2026
HouseData Team · 2026-04-07
The Daily Brief
The UK property market on 7 April 2026 maintains a steady but watchful tone, with modest house price growth continuing amid greater stock availability and selective buyer confidence. As the Renters’ Rights Act approaches full implementation from 1 May, landlords face a major shift away from Section 21 no-fault evictions toward open-ended periodic tenancies and stricter possession grounds. With the Bank of England holding the base rate at 3.75% and markets pricing in potential further hikes due to energy-driven inflation risks, the sentiment is cautiously polarised: improved choice benefits buyers while regulatory changes add urgency for the private rented sector.
Renters’ Rights Act Set to Transform Tenancy Landscape from May
The Renters’ Rights Act will abolish assured shorthold tenancies and Section 21 evictions from 1 May 2026 in England, replacing them with open-ended periodic tenancies. Landlords must rely on specific Section 8 grounds for possession, with enhanced tenant protections including limits on rent increases and the right to request pets (which cannot be unreasonably refused). New legal duties require landlords and agents to provide tenants with clear information on these rights by 31 May 2026 to avoid fines.This policy nugget marks one of the most significant shifts in the private rented sector in decades, aiming to rebalance power toward tenants while prompting many smaller landlords to reassess portfolios. Preparations are intensifying in April, with compliance checklists focusing on updated contracts, deposit handling, and property standards.
Bank of England Maintains 3.75% Rate Amid Geopolitical Pressures
The Bank of England held Bank Rate at 3.75% following its March meeting, citing disruptions to energy supplies that are pushing up fuel and utility costs. The next decision on 30 April is widely expected to result in another hold, with some brokers now anticipating one or two potential rate hikes later in 2026 as inflation risks persist.This outlook keeps mortgage rates relatively stable but elevated compared to pre-2022 norms, with five-year fixed deals recently dipping below 4% in competitive offerings. Earlier resilience in approvals provides some support, yet affordability remains a key constraint for many.
House Price Growth Remains Modest with Regional Variations
Latest official data shows UK house prices rose 1.3% in the year to January 2026, with the average at £268,000. Other indices reflect similar modest momentum: Halifax reported the average breaching £300,000 earlier in the year with 1.3% annual growth, while forecasts for full-year 2026 cluster around 2% nationally, tempered by slower cuts and economic uncertainty.“The housing market entered 2026 on a steady footing... affordability remains a challenge for many would-be buyers.”
Increased listings in many areas are giving buyers more negotiating power, particularly for well-presented or energy-efficient homes.
Spring Supply Boost Enhances Buyer Choice
Portal and agent reports highlight higher stock levels compared to recent years, with more homes coming to market and greater choice supporting a balanced spring season. This uptick in supply, combined with steady transaction volumes, contrasts with tighter conditions in previous cycles and helps offset some cost pressures from rates and compliance.For movers, the environment favours realistic pricing and strong presentation, while first-time buyers benefit from a less frantic pace in many locations.
Regional Spotlight Scotland and northern England continue to show stronger prospects for 2026, with areas like Motherwell, Glasgow, Paisley, and Wigan in the North West highlighted as among the hottest for growth due to better supply-demand balance and affordability. Wales has posted pockets of outperformance, with locations such as Blaenau Gwent, Swansea, and Wrexham recording solid gains. Northern Ireland also led in some quarterly measures. In contrast, London and parts of the South East and South West have seen more subdued or flat conditions, with higher supply tempering prices and forecasts closer to 1%. This north-south divide persists, driven by relative affordability and migration patterns.
Market at a Glance – Rate & Regulatory Context (as of 7 April 2026)
| Metric | Latest Figure | Change/Note | Comparison Context |
|---|---|---|---|
| Bank Rate | 3.75% | Held (next: 30 Apr) | Potential hikes priced in |
| UK House Prices (ONS, Jan) | £268,000 | +1.3% annual | -0.3% monthly |
| Average House Price (Halifax) | ~£300,000+ | +1.3% annual | Record territory earlier 2026 |
| Renters’ Rights Act | Effective 1 May 2026 | Section 21 abolished | New duties by 31 May |
| 2026 House Price Forecast | ~2% national | Modest growth | Regional variation strong |
- First-time buyers: Greater stock levels create opportunities for negotiation, especially in northern and Scottish markets with firmer growth outlooks. Lock in competitive mortgage deals while rates remain stable and prioritise properties with solid energy credentials amid utility cost risks.
- Home-movers / sellers: Realistic pricing and highlighting efficiency or space will help stand out in a market with more choice. Spring activity supports transactions, but expect selective demand rather than bidding wars.
- Landlords / investors: Urgent preparation for the Renters’ Rights Act is essential — review tenancies, update processes, and consider portfolio adjustments before 1 May. Focus on compliant, efficient properties in high-demand affordable regions to maintain yields under new rules.