Solihull Lettings Market Update – February 2026

As we move further into 2026, the rental market across Solihull and the wider West Midlands is showing clear signs of stabilising after several years of rapid growth.

While rents are still rising overall, the pace has slowed—and that’s creating a more balanced and sustainable market for both landlords and tenants.

What’s Happening in the Rental Market?

The latest data shows that average rents across the UK rose by 2.2% during 2025, with forecasts suggesting a further 2% growth in 2026.

Interestingly, the final quarter of 2025 saw a small seasonal dip of 1.1%, highlighting that the market is no longer seeing the sharp increases of previous years.

This isn’t a downturn—it’s a shift towards a more stable market.

Supply vs Demand – A Better Balance

One of the biggest changes we’re seeing is an improvement in rental supply:

• Available rental homes are up 9% compared to last year
• However, supply is still around 33% lower than a decade ago

At the same time, tenant demand remains strong—but less intense than before:

• Average enquiries per property have dropped from 14 to 10 year-on-year

In simple terms:
Tenants now have more choice, but good properties are still letting quickly.

What This Means for Landlords

There are some positive signs for landlords heading into 2026.

Buy-to-let mortgage rates have improved, now averaging around 4.84%, down from over 5.5% last year.

This has already started to bring more landlords back into the market, increasing supply and confidence.

However, there’s a clear shift in strategy:

• Overpriced properties are taking longer to let
• Realistic pricing is key to minimising void periods
• Well-presented homes in good locations remain in highest demand

For landlords, this is no longer about chasing rapid rent increases—it’s about achieving consistent, sustainable returns.

The Local Picture – Solihull & West Midlands

In the West Midlands, the rental market remains steady and resilient.

Average rents sit at around £1,243 per month, with annual growth of approximately 2.4%, reflecting a stable local market rather than extreme volatility.

Demand continues to be strongest for:

• Well-located homes
• Properties with outdoor space
• Homes with good transport links

This aligns closely with what we’re seeing day-to-day across Solihull.

What to Expect in 2026

Looking ahead, the outlook remains cautiously positive.

• Rental growth is expected to continue—but at a slower pace
• Supply should gradually improve as more landlords re-enter the market
• Tenant competition will remain, but at more manageable levels

Overall, we’re moving into a more balanced rental market, which benefits both sides.

Get in touch

Thinking of letting your property or looking to rent in Solihull or the wider West Midlands?
I’m always happy to help with tailored advice based on your situation.

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