Tenant demand rises as rental supply drops – Propertymark

Competition for tenants remains intense as demand continues to outstrip supply, according to new data.

Propertymark’s latest housing insight report reveals the average number of applicants per member branch is eight people per property available.

The news comes as the Renters’ Rights Act came into force on 1 May 2026.

Securing a home remains challenging

According to the data, tenant demand also increased month-on-month, with the average number of new registrations per member branch rising to 98.

Meanwhile, the supply of rental homes dipped slightly, with the average number of properties available per member branch falling to 12.09.

Phil Spencer, founder of MoveiQ, explains that despite rent increases stabilising, the imbalance between demand and supply continues.

He said: “For renters, competition remains intense. With only around 12 properties available per letting branch and demand continuing to outstrip supply, securing a suitable home remains challenging.

“While rent increases appear to be stabilising in many areas, the underlying shortage of rental homes means many tenants are still facing limited choice and strong competition whenever a property becomes available.”

Long-standing imbalance between supply and demand

Nathan Emerson, chief executive of Propertymark, added: “In the lettings sector, the long-standing imbalance between supply and demand remains firmly in place. Although tenant demand increased throughout May, available stock fell slightly, leaving an average of eight applicants competing for every available property.

“While rental arrears have eased marginally, ongoing legislative change and continued pressure on landlords risk limiting future investment in the private rented sector at a time when more homes are urgently needed.”

A Propertymark member agent from the West Midlands also warned the Renters’ Rights Act is doing more harm than good for tenants.

The agent told the report: “Supply deficit, with many applicants disappointed. The Renters’ Rights Act has caused additional hardship for tenants with no fixed-term tenancies to provide security”.

Housing market remains steady

In the residential sales market, stock levels showed a marginal increase with an overall average of 44 properties for sale at each member branch.

Mr Spencer says the housing market remains steady, and there are opportunities for first-time buyers.

He said: “For buyers and renters alike, this month’s figures paint a picture of a market that’s becoming steadier but is still far from straightforward. Buyers have a little more choice than they had earlier in the year; however, affordability continues to shape decisions, with many households carefully weighing up their finances before making a move.

“The fact that homes are taking longer to complete and most are selling below asking price suggests there is room for sensible negotiation, particularly for buyers who are well prepared with their finances in place. That’s encouraging news for those entering the market, especially first-time buyers who are beginning to see more opportunities”.