Landlord confidence falls as demand outpaces supply

Demand still continues to outstrip supply as landlords lose confidence in the government, according to a new report.

Propertymark’s Housing Insight report reveals a number of member agents are worried about the upcoming Renters’ Rights Act, with more single property landlords leaving the market.

The news comes as the government has published guidance for tenants under the act.

Landlords have no confidence in the government

A Propertymark member agent from the South West told the report: “The Renters’ Rights Act is making more single property landlords leave the market. Social housing is non-existent, and the local authority is insisting that tenants do not move until they receive the bailiff letter. All compounding the reasons why landlords have no confidence in the government.”

Another member agent from Yorkshire said: “Many frightened landlords and many more concerned tenants, people really struggling to secure rental property in our area.”

According to the report, demand continues to outstrip supply, with the average number of applicants per property reaching seven.

The average number of properties available for rent also shrank slightly to 11.32 per member branch.

Supply remains constrained

Nathan Emerson, chief executive at Propertymark, says landlords are facing additional strain with rising costs.

He said: “Affordability remains stretched for many households, and ongoing global economic uncertainty continues to influence borrowing costs, adding further complexity to the landscape that agents and their clients must navigate.

“For property professionals, these factors, combined with extended transaction timelines, are increasing fall-through risks and placing additional strain on pipelines.

“In the lettings sector, while we are seeing a modest increase in fully managed instructions, supply remains constrained, and demand continues to significantly outpace availability.

“Overall, these figures reinforce the need for continued focus on improving transaction speeds, boosting housing supply, and supporting affordability across both sales and lettings markets.”

Strain of stretched affordability

In the residential sales market, the industry body reports a slight dip in house prices with the average price at £268,000.

The average number of new prospective buyers registered per member branch showed a slight drop, with an average of seven.

Phil Spencer, founder of Move iQ, told the report that many buyers are experiencing delays in the homebuying process.

He explains: “What stands out this month is that while deals are still being agreed and the market is moving, the journey to actually completing a purchase is taking longer than ever. For buyers and sellers, waiting over 17 weeks to exchange contracts can feel incredibly frustrating and uncertain, especially when you’re trying to plan your next move or manage finances.

“At the same time, many households are feeling the strain of stretched affordability, and with global uncertainty continuing to put upward pressure on interest rates, it’s becoming harder for people to budget with confidence. That combination of higher costs and longer timelines can make the whole process feel daunting.”