Homes to let fall as tenant competition intensifies

Landlords could see more tenants competing for their properties after the number of homes available to let across England fell by 12.1% during the third quarter of 2026.

The analysis by lettings platform Dwelly found that available listings have declined by an average of 6.5% per quarter since the start of the year.

The firm expects competition among prospective tenants to intensify in areas where the supply of homes is falling.

It manages more than 15,000 properties across its network of letting agencies.

Tenant competition increases

Sam Humphreys, Dwelly’s head of M&A, said: “The rental market is far from uniform, and what we’re seeing is that letting agents are having to navigate very different conditions depending on where they operate.

“In areas where available rental stock is falling, competition for properties can become more intense, placing greater importance on how quickly and effectively agents manage enquiries, progress tenancies and communicate with prospective tenants.”

He added: “But where stock is increasing, the challenge is different.

“Agents need to work harder to market available properties, attract the right tenants and minimise the time a property spends empty.”

Available lettings decline

Bristol recorded the largest average quarterly fall in available listings since the start of 2026, at 23.9%.

West Yorkshire followed with a 22.5% reduction, while availability in Merseyside fell by 17.7%.

The average quarterly declines in South Yorkshire and Leicestershire were 15.8% and 14.8% respectively.

Nottinghamshire also recorded a fall, of 14.7%, alongside reductions of 12.8% in the West Midlands and 9.9% in Greater Manchester.

More homes available

However, Wiltshire recorded the strongest average quarterly increase in homes available to let since the start of the year, at 17.4%.

Availability in West Sussex rose by 13.2%.

Herefordshire saw an increase of 9.0%, followed by Suffolk at 7.8%.

In Bedfordshire, the number of available listings grew by an average of 7.2% per quarter.