Rental Market Update – What Today’s Market Means for Landlords

At NGU Homes, we’re seeing the rental market across the North East continue its shift away from the extreme conditions experienced over the past few years - and importantly, this is not a negative change.

Across areas such as Newcastle, Gateshead, Sunderland, North Tyneside, South Tyneside, Durham and Northumberland, tenant demand has softened slightly compared to last year, while the supply of available rental homes has increased. This has led to longer average let times in some locations and a slowdown in rental growth, bringing it to its most measured pace in several years.

This is not a sign of a weak market- It is a sign of a more balanced and sustainable North East rental market.

Rents are still increasing, but at a steadier and more predictable rate, broadly aligned with earnings growth. Forecasts for the year ahead suggest continued, stable increases rather than sharp spikes - supporting affordability, improving tenant retention, and reducing unnecessary turnover.

What has changed most is tenant behaviour.

With more choice available, tenants are becoming increasingly selective. Properties that are:

💵Priced correctly from the outset

🔨Well maintained

💼Professionally presented

🏠 Marketed effectively

are continuing to let well.

Conversely, properties that miss the mark on pricing, condition, or presentation are taking longer to let, increasing the likelihood of void periods and the need for incentives.

For landlords, this market places greater emphasis on:

💵Realistic and informed pricing

🏠Strong property standards

🖐Proactive, hands-on management

✅Full compliance readiness

As the market normalises, professionalism matters more than ever. Landlords who approach their portfolio as a long-term investment - rather than a short-term play - are best positioned to perform well in the current environment.

If you would like to review how your property or portfolio is positioned within the current North East rental market, a short planning conversation with our team can help reduce risk and support confident decision-making.