Landlords exit as demand soars and supply tightens

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Landlords exit as demand soars and supply tightens

Demand continues to outstrip supply as landlords leave the market due to the Renters’ Rights Act, claims a new report.

Propertymark’s Housing Insight report reveals the number of registrations per member branch has jumped to 87, with the average number of applicants per member branch sitting at seven people per property.

The news comes as the Renters’ Rights Act will become law on 1 May 2026.

PRS landlords have no confidence in the government

A Propertymark member agent from the South West told the report: “The Renters’ Rights Act is making more single property landlords leave the market. Social housing is non-existent, and the local authority is insisting that tenants do not move until they receive the bailiff letter. All compounding the reasons why private rented sector landlords have no confidence in the government.”

An agent in Yorkshire said: “Many frightened landlords and many more concerned tenants, people really struggling to secure rental property in our area.”

According to the report, 63% of member agents reported that rents remained generally static, and 17% reported an increase.

Challenge is availability

Phil Spencer, founder of MoveiQ, explains renters are struggling to find a place to live.

He said: “For renters, the challenge is still availability. With demand far outpacing supply in many areas, competition for rental homes remains intense, which can make securing a property stressful and time-consuming.

“The positive takeaway is that the market is functioning and transactions are continuing to happen. For buyers and renters alike, preparation is key, whether that means getting finances in order before house hunting or acting quickly when the right property becomes available.

“As the year progresses, many will be hoping that improvements in the wider economy start to ease the pressure on household budgets and make moving a little easier.”

Supply remains constrained

Nathan Emerson, chief executive of Propertymark, said: “Within the lettings market, demand continues to outstrip supply, with an average of seven applicants competing for each available property. Although stock levels have edged slightly upward, supply remains constrained, and this imbalance is likely to remain a key challenge for renters and agents alike throughout the year.

“Overall, the data points to a market that is stabilising rather than surging. Activity is returning after seasonal slowdowns, but the pace of recovery will remain closely linked to inflation trends, interest rate decisions, and wider economic confidence during 2026.”

Rise in viewings

In the sales market, the average number of viewings per available property increased compared to the previous month, reaching 2.2 per property.

Market appraisal volumes, which indicate future supply, show that the average number of appraisals conducted per member branch stood at 21.

Mr Spencer said the data for the sales market shows a more considered pace among buyers: “What we are seeing in this data is that people haven’t stopped moving, but they are being more measured in their decisions.

“The rise in viewings suggests buyers have started to actively explore their options again, while stable buyer registrations show that demand is returning, even if people are taking longer to commit.”

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