Nearly eight in 10 tenants have struggled to find suitable rental accommodation over the last two years according to new research from LRG, highlighting the ongoing mismatch between tenant demand and available housing supply.
The Spring 2026 Lettings Report found that 78% of tenants searching for a rental property encountered fewer options than they expected, despite major reforms designed to strengthen tenant protections.
The findings suggest that while recent legislative changes may have altered the legal balance between landlords and tenants, they have done little to address the underlying shortage of available rental homes.
According to the report, affordability and limited availability remain the two biggest barriers facing renters looking to move.
RENTERS’ RIGHTS ACT
Among tenants who searched for a property in the last two years, 32% said affordability was the main challenge, while 22% cited a lack of available homes. A further 24% said they struggled with both affordability and supply.
The research comes after significant changes to the private rented sector through the Renters’ Rights Act, including the abolition of fixed-term tenancies, the removal of Section 21 notices and restrictions on rent in advance.
As a result, 89% of landlords believe the balance of power has shifted towards tenants, with 61% saying it has moved strongly in favour of renters and a further 28% believing it has shifted slightly.
COMPLICATED TENANT EXPERIENCES
A quarter of renters said they wanted to move during the last year but were unable to do so. Of those, 10% said they could not afford to move, 6% were unable to find a suitable property and 9% chose to remain where they were despite wanting to relocate.
Only 5% of tenants surveyed had successfully moved home during the previous 12 months.
The report suggests that while supply conditions have shown some signs of improvement, availability remains significantly below historical norms.
Rightmove data indicates the number of available rental homes is 9% higher than a year ago, while Zoopla has reported that wage growth has outpaced rental inflation for a third consecutive year.
However, rental stock remains around a third lower than a decade ago, with supply still between 20% and 30% below pre-pandemic levels across all regions.
AFFORDABILITY CHALLENGE
Official figures show private renters in England spend an average of 36.3% of household income on rent, above the commonly used affordability threshold of 30%.
Even if house prices were to fall significantly, many renters would still be unable to transition into homeownership. The report found that one-third of tenants would remain unable to buy, regardless of house price reductions.
“Solving one without the other will never be enough.”
Allison Thompson (main picture, inset), Chief Lettings Officer at Leaders, part of LRG, says: “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.
“Solving one without the other will never be enough. What the market needs is more good landlords, letting good properties, supported by good agents who know how to make the relationship work for everyone.”
