The supply of rental accommodation has dropped significantly as landlords divest due to increasing regulation.
New research from TwentyEA shows that during 2022, supply volumes reduced by 8% year-on-year and 25% since 2019.
Demand for rental accommodation is also falling, but less than supply, with tenants only able to rent what is available. However, the underlying demand is still strong if the supply is there, because of rising prices. During 2022 demand volumes were 4% down in 2021 and 17% down in 2019.