Tenants struggle to find homes as lettings market shifts

Nine in 10 landlords believe the balance of power in the private rented sector has moved in favour of tenants during the past two years, according to research from LRG.

However, 25% of tenants still believe landlords have the upper hand.

The firm’s Spring 2026 Lettings Report, based on responses from 650 landlords and tenants across England and Wales, found the two groups had sharply different experiences of the same market.

Among landlords, 61% said power had shifted strongly towards tenants and another 28% reported a slight shift.

Just 1% believed it had moved strongly in landlords’ favour.

Legislation supports tenants

The chief lettings officer of Leaders, which is part of LRG, Allison Thompson, said: “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.”

She added: “Solving one without the other will never be enough.”

Most tenants struggle for homes

The changes introduced by the Renters’ Rights Act include the abolition of fixed-term tenancies and Section 21 evictions, as well as restrictions on advance rent payments.

Of those tenants who had searched for a home to rent during the past two years, 78% found fewer suitable choices than they had expected.

Affordability was the main obstacle for 32%, while 22% blamed a lack of available properties.

A further 24% found both prices and availability considerably worse than expected.

Rents outpace affordability

Private tenants in England spend 36.3% of their median household income on rent which is above the 30% affordability threshold.

The rented housing shortage has prevented some tenants from moving.

One in four wanted to change homes during the past 12 months but did not manage to do so.

Of those surveyed, 10% said they could not afford to move and 6% were unable to find a suitable property.

Another 9% considered moving but eventually stayed where they were. Only 5% changed homes during the period.