Landlords are facing more competition as renters become choosier about where they want to live.
Recent data shows that the average number of new potential tenants registering at each letting branch increased from 79 to 115. This indicates a rise in demand and higher expectations in the rental market.
Renters now want homes that support their work, leisure, and daily activities in practical ways, so standard layouts are not enough. This change is forcing landlords to rethink how they use every part of their properties.
More investors are looking at garden buildings to meet these needs, as they provide flexible, purpose-driven space without major disruptions. This trend is growing and is changing how landlords plan for rental value in 2026.
Insights from Allan Clarke Property Management also highlight the increasing tenant demand for dedicated workspaces, suggesting that garden rooms will continue to shape rental expectations into 2026.
Reasons Why Landlords Are Adding Garden Buildings
Here are some practical reasons why landlords are adding garden buildings to increase rental value in the upcoming year:
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Meets Rising Tenant Demand
Hybrid work is now common in the UK. Renters want quiet spaces where they can concentrate. A garden room offers separation from the main home, helping them focus better.
According to Peterball, the UK garden room market was worth £266 million. This shows that many renters are interested in having extra space to support remote work and daily routines.
Young professionals and families are looking for rentals that include an extra room. Property owners who provide this mostly see more interest and quicker decisions from applicants.
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Adds Space Without Renovation
Property owners want to improve their rental offers without the expense and disruption of major construction. Garden structures provide a solution by adding additional usable space while keeping the main building intact.
These structures take less time to install than traditional extensions and create minimal disruption for residents. Landlords can increase rental value with this option, which avoids lengthy construction periods and heavy planning requirements.
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Increases Rental Yield With Multi Purpose Studios
An outdoor studio can be used for many purposes, which makes it more appealing to renters. Tenants can customise the space for their needs. Common uses include:
- Workspace
- Fitness area
- Hobby or creative space
- Small treatment room
- Guest accomodation
- Leisure or gaming room
Renters are willing to pay more for homes that ease their daily routines. In competitive markets, a dedicated studio helps a property stand out.
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Strengthens Appeal With Well Designed Rooms
The quality of design affects tenants’ choices. A bright, insulated, and well-sized garden room enhances the property’s overall appeal and shows the landlord cares. Homes with well-finished extra rooms often attract tenants who stay longer. This reduces turnover and helps stabilise returns.
A well-planned room helps renters see how the space fits their daily lives. A clear layout, good lighting, and practical finishes make the room easy to use from the start. These features boost confidence during viewings and lead to quicker decisions from applicants.
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Speeds Up Upgrades Through Permitted Development
Numerous garden structures do not require full planning permission, provided they meet specific size and location requirements. This is great for landlords who want to act fast.
In April 2025, reports show that people in England now wait an average of 10 weeks to get decisions on complete household planning applications. This is an increase from 8 weeks the year before. This delay leads more property investors to choose approved development paths, which help them avoid long wait times and make improvements faster.
Faster approvals lead to quicker installations and help avoid rental performance delays. With fewer documents to handle, more landlords are planning to add outdoor studios to their projects for next year.
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Improves Long Term ROI with Low Disruption Builds
Garden rooms help reduce vacant periods by giving tenants more value. Rentals with usable outdoor space attract more interest. A well-designed studio makes everyday living better and encourages tenants to remain longer. This leads to stronger long-term financial performance.
According to Surrey Hills Garden Buildings, property owners are increasingly prioritising garden studios because they add functional space without the disruption or expense of major renovations.
Outdoor structures remain appealing even when market conditions change. Tenants still prefer homes that provide flexibility and comfort, which helps a property hold its value over time.
Conclusion
Garden buildings are an important upgrade for landlords getting ready for 2026. They meet rising tenant expectations, increase rental value, and provide extra space without major renovations.
Renters across the UK want homes that support their work lives and daily routines. By investing in flexible outdoor rooms, landlords can attract more tenants and earn better returns in the coming year.
