Rental Supply Falls Below Last Year's Levels for the First Time in Four Years

Rental Supply Falls Below Last Year's Levels for the First Time in Four Years

The supply of rental properties has dipped below last year's levels for the first time since the post-pandemic recovery began, according to the latest figures from Rightmove.

During the second quarter of 2026, the number of homes available to rent was 1% lower than the same period in 2025. Following record-low stock levels after the pandemic, rental supply had been gradually improving, making this the first annual decline in four years.

Rightmove suggests the reduction is largely due to fewer landlords bringing new properties to market, rather than homes being let at a faster pace. The slowdown comes shortly after the introduction of the Renters Rights Act, with many of its key measures taking effect on 1 May.

Despite fewer rental listings, the market is showing signs of becoming more balanced. Tenant competition has eased considerably compared with the peak seen in 2022. On average, each rental property now receives around 10 enquiries, down from 11 a year ago and significantly lower than the 22 enquiries recorded at the height of demand. However, competition remains stronger than before the pandemic, when homes typically attracted around five enquiries each.

Regional differences continue to shape the market. The North East and North West are leading annual rental growth, with advertised rents increasing by 4.1% year-on-year. In comparison, the East Midlands and East of England have seen more modest growth of 1.5%.

London currently has one of the most balanced rental markets, with properties receiving an average of eight enquiries. Meanwhile, the North West remains the most competitive region for tenants, where each available home attracts around 14 enquiries, reflecting ongoing demand that continues to outstrip supply.

Rightmove also reports that the average advertised rent for properties coming to market outside London increased by 1.9% during the second quarter, reaching a new record of £1,397 per calendar month. Annual rental growth outside the capital has also accelerated, rising to 2.3% from 1.6% in the previous quarter.