Is buy-to-let still a viable investment in 2026? With the Renters’ Rights Act coming into force this May and mortgage rates fluctuating, many UK landlords are questioning if the market still offers genuine value.
The latest Rightmove House Price Index (April 2026) provides a compelling answer. While the broader UK market adjusts to higher borrowing costs, a "flight to quality" is drawing professional investors back to the capital.
According to the 20 April report, the national average asking price for a home rose by 0.8% (£2,929) this month. However, for landlords, the real opportunity lies in the current supply-demand imbalance.
For many UK landlords, the legislative changes arriving on 1 May are the biggest hurdle. The shift to rolling periodic tenancies and the abolition of fixed terms require a more sophisticated approach to property management.
At CHBL, we view this as an opportunity. By focusing on Prime Central London apartments and new-build developments, landlords can attract "A-grade" corporate tenants who prioritise stability. These tenants are less affected by the cost-of-living squeeze and typically seek long-term homes, significantly reducing the risk of void periods under the new laws.
Recent reports highlight a "North-South divide" in capital growth, yet Central London is reclaiming its crown for rental yield stability.
In Wapping and Tower Hill, the average asking price is £680,147 with estimated rental yields between 5.8% and 6.2%, driven by proximity to City and Tech hubs. Canary Wharf offers even higher yields at 6.3% due to its luxury amenities, while Nine Elms remains a favourite for those seeking strong capital growth alongside a steady 5.9% return.
Pro Tip: With the average 2-year fixed mortgage rate now at 5.42%, savvy investors are targeting yields that clear the 6% mark. Investing in new-build developments with high EPC ratings (B or above) is now essential to future-proof assets against 2030 energy regulations.
With the compliance burden increasing, "DIY Landlording" is becoming a thing of the past. To maintain a profitable portfolio in 2026, you require:
The 2026 market rewards precision over guesswork. Whether you are looking to expand your portfolio or require expert guidance on the new rental laws, CHBL (Crown Home Buying & Letting) is your local partner in Central London.
As the leading agency for lets in London Dock, we have the data and the network to ensure your property outperforms the market.
Contact the CHBL team today for a complimentary portfolio review or rental valuation.
Please leave your message here, and a member of our team will get back to you within 24 hours. Alternatively, you can reach us at info@chbl.uk or call us at +44 (0) 207 903 6881.
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