The Spring lettings report from Leaders Romans Group (LRG) suggests that the balance of power in the rental market has shifted significantly in favor of tenants over the last two years. According to the survey, Allison Thompson, Chief Lettings Officer, states that nine in ten landlords believe this shift has occurred. However, a quarter of tenants still feel landlords hold the upper hand. This contradiction highlights a complex dynamic where tenants may have more legal protections, yet they struggle to secure the housing they need.
A critical shortage of options exists in the current market. The research reveals that 78% of tenants found fewer choices than expected. For 32%, the main barrier was affordability. This finding aligns with ONS data showing that for 22% of tenants, limited availability of rental properties was the main barrier, with a further 24% finding far less than expected on both counts. Legislation can shift the terms of renting, but it cannot conjure homes that are not there. The disparity between these figures suggests that while tenants are legally empowered, the practical reality of searching for a property often feels restrictive and unresponsive to their needs.
More worryingly, the report notes that 25% of tenants hoped to move in the last 12 months. Of those, 6% could not find anything suitable, and 9% chose to stay despite wanting to move. As a result, only 5% of tenants actually moved when they wanted to. This stagnation affects not just those trying to move, but also tenants coming into the market, who may face even fewer options or be forced into unsuitable accommodations. The ripple effect of this immobility extends beyond individual households, potentially causing long-term issues for the wider housing ecosystem where people cannot relocate for better jobs or family circumstances.
Legislative changes often focus on the relationship between landlords and tenants, but the core issue remains structural. Even with increased rights, the fundamental problem is a lack of inventory. If the supply of available units doesn’t match the demand, tenants face a “locked in” existence regardless of who holds the legal advantage. This creates a situation where the market is more regulated, but the physical reality of finding a home remains difficult for the majority. The disparity between the perception of power and the reality of availability creates a frustrating environment where the system’s protections do not translate into tangible housing solutions.
The Buying Market’s Limited Impact
With the sales market moving at a slower pace and some property prices falling below 2022 levels, one might assume this would help more tenants buy their own homes. However, the report suggests this is not necessarily the case. Only 16% of tenants said they would look to buy immediately, and 33% said they still could not buy regardless of market conditions.
For those looking to transition from renting to ownership, affordability remains a major hurdle. Deposit requirements, mortgage affordability checks, and day-to-day living costs can all stop renters from being able to make the switch. A quieter sales market might offer better conditions for buyers, but for a significant portion of the rental population, the financial barriers to entry into homeownership persist unchanged. The gap between rental costs and the capital required for a deposit often creates a barrier that market fluctuations alone cannot bridge.
Outlook for the Rest of 2026
Although there are more rental homes available than in 2025 and average earnings are outpacing rental growth, most research shows that the number of properties available to let remains 20% to 30% lower than before the pandemic. This lingering deficit means tenants will likely continue to face tough competition for good-quality homes.
The structural shortage ensures that even with economic growth, the rental sector faces headwinds. Tenants may face difficulty moving when their circumstances change, and they will have fewer options in the areas where they need to live. For investors, this suggests that tenant demand remains strong in many areas because the supply of suitable rental homes is still not meeting need. The persistence of this gap indicates that the rental sector remains a vital component of the housing market, particularly for those who are not yet ready or able to purchase.
For good landlords, this market could still offer opportunities. The key is to understand what tenants in your area actually need. A rental property that is well located, fairly priced and properly maintained is still likely to appeal to tenants, especially in areas where choice is limited. However, investors need to make sure the numbers work. Higher mortgage rates, maintenance costs, compliance requirements and tax changes all need to be factored in before buying. Upfront Rent Payers Find Ways to Safeguard Home.
