The Rental Market is Rebalancing
But 78% of Tenants Still Can’t Find What They’re Looking For
Nine in ten landlords believe the balance of power in the rental market has shifted in favour of tenants over the last two years – yet a quarter of tenants still feel landlords hold the upper hand, according to new research from LRG. The Spring 2026 Lettings Report, which draws on responses from 650 landlords and tenants across England and Wales, finds both sides responding to the same market from very different vantage points – and both have a point.
From a landlord’s perspective, the shift is hard to miss. The wave of legislative change brought in by the Renters’ Rights Act – abolishing fixed-term tenancies, ending Section 21, and restricting advance rent – has fundamentally changed how letting works. Some 61% of landlords say power has shifted strongly towards tenants, with a further 28% saying it has shifted slightly. Only 1% feel it has moved strongly in favour of landlords.
But for tenants on the ground, new legal protections do not always translate into greater practical choice. Of those who searched for a rental property in the last two years, 78% found fewer choices than expected. For 32%, the main barrier was affordability. This finding aligns with ONS data showing that, on a median household income, private renters in England spend 36.3% of their income on rent, above the 30% affordability threshold. For 22%, limited availability 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.
That shortage has a direct human cost. A quarter of tenants wanted to move in the last twelve months but were unable to: 10% couldn’t afford to, 6% couldn’t find anything suitable, and 9% wanted to move but ultimately chose to stay. Only 5% of tenants actually moved in the period. It is a picture consistent with the ONS Price Index of Private Rents, which shows average monthly private rents rose 3.5% to £1,381 in the twelve months to April 2026 – putting further pressure on those who need to move but cannot stretch their budget to do so.
Homeownership offers little relief. When asked what they would do if house prices in their area fell significantly tomorrow, 33% of tenants said they still couldn’t buy regardless. Only 16% said they would look to buy immediately. The supply picture offers some cautious grounds for optimism: Rightmove reports the number of available rental homes is 9% higher than a year ago, and Zoopla’s June 2026 Rental Market Report notes that 2026 is set to be the third consecutive year in which earnings have outpaced rent growth. But supply remains well short of what is needed: Rightmove puts available stock at 33% below where it was a decade ago, and Zoopla finds it still 20% to 30% below pre-pandemic levels in every region. For tenants, gradual improvement is welcome – but it is not yet enough.
Allison Thompson, Chief Lettings Officer, Leaders part of LRG, commented,
“What this data shows is that landlords and tenants are both describing the same market accurately; they are just experiencing it from different positions. Landlords feel the weight of legislation that has genuinely shifted protections towards tenants. Tenants feel the weight of a market where there aren’t enough homes to choose from. Both things can be true at once. Solving one without the other will never be enough. What the market needs is more good landlords, letting good properties, supported by good agents who know how to make the relationship work for everyone.”
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