Can You Change Letting Agent Mid Tenancy in Surrey?
Can You Change Letting Agent Mid Tenancy in Surrey?
What happens if you’re renting out your Surrey property but your letting agents aren’t delivering the level of service you signed up for?
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Surrey Property Market Update 2026: What Landlords Need to Know
If you’re a landlord in Surrey, it’s important to keep up with the local (and national) property market to see what changes are afoot – and where opportunities may lie in 2026.
While the national property landscape is shaped by regulatory upheaval (for example, the Renters Rights Act) and shifting economic conditions, Surrey’s rental sector continues to demonstrate the resilience that has long made it one of the most attractive regions in the South East for property investors.
This property market update brings together the latest data and local insights to help landlords in Guildford, Godalming, Cranleigh, Farnham and the surrounding villages make informed decisions about their investments this year.
Whether you’re a seasoned portfolio landlord or letting a single property, understanding the forces shaping Surrey’s rental market in 2026 is essential.
Liz Gamlen
Lettings Director
Written By
Rental growth in Surrey’s property market
After several years of sharp rent increases driven by pandemic-era demand and chronic undersupply, growth across the UK’s rental market is calming. According to Zoopla’s December 2025 Rental Market Report, UK rents for new lets are expected to rise by approximately 2.5% in 2026, down from the double-digit growth seen in 2022 and 2023. Nationally, average rents reached £1,320 per month by the end of 2025, with annual growth easing to 2.2%.
Surrey, however, continues to outperform the national average. The latest ONS data shows that average private rents in Guildford rose 4.9% year-on-year to reach £1,689 per month in December 2025 – which is comfortably above the South East average of £1,402. Flats and maisonettes saw particularly strong growth at 5.3%, while even four-bedroom-plus properties recorded increases of 3.9%.
This premium reflects the enduring appeal of Surrey for professionals, families and London commuters – a trend which is likely to continue for the foreseeable future, with high demand, significant yields and long-term capital growth for landlords who invest in the market.
What this means for landlords
Rental growth of 2–3% may feel modest compared to recent years, but for landlords whose mortgage costs have stabilised alongside Bank of England base rate expectations, this represents a healthy, sustainable return. Average gross yields in the South East held at around 6.1% through mid-2025 according to Rightmove, and there is every reason to expect this to remain steady through 2026.
The key message for Surrey landlords is that the market rewards quality. Properties that are well maintained, competitively priced and professionally managed will continue to attract excellent tenants and minimise void periods.
Changes to rental supply & demand in 2026
Nationally, the rental market is rebalancing. Zoopla reports that rental supply is up 15% year-on-year across the UK, while demand has fallen by roughly a fifth, driven in large part by a 78% decline in net migration between June 2023 and June 2025. This has eased the intense competition that characterised the post-pandemic market.
In Surrey, however, the picture is more nuanced. While some additional stock has entered the market as tenants have been able to purchase their first homes, demand in the county continues to outstrip supply, particularly for high-quality, well-located family homes. Towns like Guildford, with its university, strong employment base and excellent transport links to London, remain magnets for professional tenants.
The average house price in Guildford borough stood at £523,000 as of December 2025 (broadly flat year-on-year) which means affordability barriers keep many aspiring homeowners in the rental market for longer. For landlords, this translates into a deep, reliable tenant pool and properties that let quickly when properly managed.
Interest rates & mortgage costs in 2026
After several years of volatility, 2026 is expected to offer more stable borrowing costs for landlords.
Analysts predict the Bank of England will keep rates steady for most of the year, with reductions possible if inflation stays subdued. For landlords with variable or tracker mortgages, this is encouraging news. For those on fixed deals approaching expiry, the current environment offers far more palatable refinancing options than it did in 2022.
Rightmove’s forecast of 2% growth in average asking prices for 2026 suggests that capital values are also stabilising, offering landlords the prospect of steady total returns from both income and equity growth. At the same time, muted capital growth values are likely to tempt some homeowners to let their properties rather than choosing to sell up right now.
The impact of The Renters’ Rights Act coming into force
The most significant development facing landlords in 2026 is undoubtedly the Renters’ Rights Act, which received Royal Assent in October 2025 and comes into force on 1 May 2026. This legislation represents the most sweeping overhaul of private tenancy law in England in a generation, and landlords who fail to prepare risk both compliance issues and lost income.
Key Changes at a Glance
- Assured shorthold tenancies are abolished. All new tenancies will be periodic from the outset, with no fixed terms.
- Section 21 ‘no-fault’ evictions are banned. Landlords must rely on specific grounds for possession under a reformed Section 8 framework.
- Rent increases are limited to once per year, and must reflect local market levels. Rental bidding above the advertised price is prohibited.
- Tenants gain the right to request pets, which landlords can only refuse on reasonable grounds.
- Rent in advance is restricted. Landlords cannot require more than one month’s rent before the tenancy begins, though holding deposits of up to one week’s rent remain permissible.
- New anti-discrimination protections mean landlords cannot apply blanket bans on tenants with children or those receiving benefits.
For many experienced landlords, some of these changes will feel manageable. The shift to periodic tenancies, for instance, reflects what quality agents have already been practising – focusing on building long-term, stable tenancies rather than relying on contractual lock-ins.
However, the abolition of Section 21 does require a genuine change in approach. Landlords will need robust tenancy agreements, thorough referencing processes and professional management from an agency who understands the changing rules.
The importance of professional property management in 2026
The combination of new legislation, evolving energy standards, shifting market dynamics and an increasingly discerning tenant base makes one thing clear: professional property management is no longer a luxury for Surrey landlords – it is a necessity.
Howard Morley & Sons has been letting and managing rental property in Guildford and the surrounding villages since 1960. As an independent, owner-run agency, we offer something that larger chains and online platforms simply cannot: genuine local knowledge, personal accountability and the kind of long-standing relationships with landlords and tenants that produce consistently excellent outcomes.
Our team manages everything from a single office in Guildford, covering properties across Cranleigh, Godalming, Farnham, Ripley, Shalford, Bramley, Normandy and Milford.
Want more than a property market update?
The Surrey lettings market in 2026 is not without its challenges for landlords. However, for those who approach the year with the right preparation and the professional support, it remains a strong market for letting property. Surrey landlords can expect to see strong rental demand, significant yields and a highly resilient rental market which endures despite the new regulations on the horizon.
Get in touch with us today for expert property management and rental guidance for 2026.
As a well-established letting agent in Guildford, Farnham, Godalming and beyond, Howard Morley & Sons are equipped to guide Surrey landlords through their lettings journey. Contact us today to find out more.
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