Rightmove reports sharp rise in rental enquiries amid supply drop

Rightmove reports sharp rise in rental enquiries amid supply drop

Rightmove data reveals a 1% decline in rental property supply year-on-year with some regions seeing up to 14 enquiries per available home, highlighting ongoing demand pressures in the UK rental market.

Rightmove’s latest figures show that the number of rental homes available in the UK fell below the previous year’s level in the second quarter of 2026, marking the first such drop in four years. This reduction in supply coincides with the implementation of the Renters’ Rights Act in May, which has introduced new regulations affecting landlords and letting agents. Despite the tighter supply, tenant demand remains elevated compared to pre-pandemic levels, with some regions experiencing intense competition for rental properties.

The portal reports that the overall balance between supply and demand is stabilising nationally, with the average rental home receiving 10 enquiries, down slightly from 11 a year ago but still double the pre-pandemic average of five. However, regional disparities are significant, with northern areas such as the North West seeing as many as 14 enquiries per property, indicating a pronounced mismatch between demand and supply in those markets.

Rightmove’s data on rental supply and demand trends

Rightmove’s analysis attributes the decline in rental stock primarily to a fall in newly listed properties rather than faster letting speeds. The total number of homes to rent is now 1% lower than the same period last year, reversing the steady growth seen since the pandemic’s early impact. This suggests landlords may be hesitant to list new properties amid evolving regulatory pressures.

Demand remains strong, with the portal noting that competition between tenants is still higher than before the pandemic, despite easing from the peak levels seen in 2022 when there were 22 enquiries per property. London currently shows the most balanced market with eight enquiries per home, while northern regions continue to outperform in rent growth, recording annual increases of over 4% in the North East and North West.

Average advertised rents outside London rose by 1.9% in the second quarter to a record £1,397 per calendar month, reflecting ongoing upward pressure on rents in many areas. This contrasts with more modest rent growth in regions like the East Midlands and East of England, where annual increases are closer to 1.5%.

Implications of rental supply tightening and Renters’ Rights Act

The timing of the supply drop alongside the Renters’ Rights Act implementation is notable. The new legislation, which introduced enhanced tenant protections and altered possession procedures, may have contributed to landlords’ reticence to list properties or prompted some to exit the market. This could exacerbate supply shortages in certain areas, particularly where demand remains high.

For landlords and letting agents, these trends underline the importance of adapting to a market where tenant demand remains robust but supply is constrained. Maintaining compliance with the Renters’ Rights Act is critical to avoid enforcement risks and reputational damage. At the same time, landlords may need to review rent-setting strategies carefully in regions with strong demand to balance income goals with tenant retention.

Regional variations and market outlook

The stark regional differences in enquiry levels and rent growth highlight the uneven nature of the UK rental market. Northern regions’ strong performance contrasts with more subdued conditions in parts of the Midlands and the South East. London’s relatively balanced market suggests that supply and demand are closer to equilibrium there, though rents remain high.

Landlords operating in high-demand areas like the North West should be prepared for continued competition among tenants and potentially quicker lettings. Conversely, those in regions with slower rent growth may face different challenges, such as longer void periods or pressure to improve property standards to attract tenants.

What landlords should consider now

Landlords should closely monitor local market conditions and enquiry levels to inform letting strategies. Ensuring full compliance with the Renters’ Rights Act is essential, including updated tenancy agreements, possession processes, and tenant communication. Keeping detailed records of compliance actions and tenant interactions will be increasingly important if disputes arise under the new legal framework.

Reviewing rent levels in light of regional growth trends can help landlords remain competitive without pricing themselves out of the market. For letting agents, advising landlords on regulatory changes and market dynamics will be crucial to managing portfolios effectively and maintaining tenant demand.

Supporting landlords through regulatory changes with TLA

The Landlord Association (TLA) offers members access to practical compliance resources and guidance tailored to the evolving rental market and legislation such as the Renters’ Rights Act. Our new property management and compliance platform, ORBIT, currently in BETA testing, is designed to help landlords and letting agents organise their portfolios, manage documentation, and keep track of regulatory obligations.

ORBIT’s tools for recording repairs, inspections, and communications can assist in maintaining evidence of compliance and tenant engagement, which is particularly valuable under the new tenancy protections. TLA membership also provides access to up-to-date information on market trends and regulatory developments, helping landlords stay informed and prepared.

Explore TLA membership and learn more about ORBIT BETA access to support your property management and compliance needs in this changing market.

Looking ahead, landlords will need to remain agile as rental market conditions and regulatory frameworks continue to evolve. Staying informed and proactive will be key to managing portfolios successfully in a competitive environment with ongoing legislative change.

Sources: Letting Agent Today