Rents have become more affordable, while competition among tenants for properties has eased, despite the looming Renters' Rights Act.
11th Mar 20260 728 2 minutes read Myra Butterworth
Renting a home is the “easiest” it has been for tenants at any point during the past six years, Zoopla has claimed.
The property website’s research suggested that rents have become more affordable, while competition among tenants for properties has eased.
At the same, the supply of properties available to rent has increased, it claimed.
It is far cry from the red-hot property market seen during the pandemic of 2022 and 2023.
Rental demand dropsZoopla said demand among tenants dropped 14% in the past year, while the number of homes available for rent increased by 11% during the same period.
It means less competition among tenants, with typically 4.8 enquiries per property. This is down from 6.5 a year ago.
Less competition has seen rental growth for new lets slow to 1.9% in the past year, down from 2.8% a year ago.
Zoopla attributed the shift in the rental market to improving conditions in the mortgage market for first-time buyers and a continued decline in migration into the UK for work and study.
Renters’ Rights ActThe market has become more balanced compared with the 2022–23 peak.”
However, letting agents on the ground claim many landlords are leaving the sector ahead of the Renters’ Rights Act.
Harry Watts, Lettings Director at London agent Douglas & Gordon said: “We’re seeing a more mixed picture on the ground in Central and South West London. While the market has become more balanced compared with the 2022–23 peak, applicant registrations are still up 18% so far this year versus the same period last year, which points to continued underlying demand for well located, good quality homes.
“At the same time, as we move closer to the Renters Reform Act, we’re seeing more tenants being asked to move at points in the year when they would not typically expect it. In many cases, this appears linked to landlords reassessing their position and, in some instances, choosing to sell, which is becoming more prevalent.
“And even where rental growth is cooling, there is a clear affordability ceiling. Over the past couple of years, tenant incomes have struggled to keep pace with pricing, so correctly priced homes let well, while anything ambitious is taking longer and facing sharper negotiation.”
Landlords selling
Jeremy Leaf, Principal, Jeremy Leaf & Co
Meanwhile, Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: “Conditions for letting property are favourable at present given the level of stock being sold and demand remaining strong in most areas, so many longer-term landlords are taking advantage.
“However, the reason why many are leaving the sector is the looming Renters’ Rights Act which is due to become law on 1 May.
“Landlords will then find regaining possession is likely to prove more difficult – they will have to wait over a year if they want to re-let to prevent back-door evictions, they won’t be able to increase the rent more than once a year and then subject to review, as well as stricter penalties, to name but a few changes.
“As a result, an increasing proportion of landlords are not renewing agreements and trying to sell despite the attraction of higher rents and yields.”
Tagsprivate rental market Zoopla 11th Mar 20260 728 2 minutes read Myra Butterworth Share Facebook X LinkedIn Share via Email
