Britain’s renters are caught in the grip of a worsening crisis, as a shrinking pool of available rental properties collides with surging demand—sending rents spiralling upwards and leaving tenants with fewer options and mounting costs.
According to the latest Housing Insight Report from Propertymark, the imbalance between supply and demand remains stark, with the average Propertymark member branch listing fewer than 10 available rental homes in June—down from previous levels—while more than six tenants competed for each property.
This mismatch has created a perfect storm, pushing UK rents up by 6.7% over the past 12 months, according to data from the Office for National Statistics. Even on a month-to-month basis, rents are still climbing, with a 0.3% increase recorded most recently. In England, average rents now stand at a record £1,399.
The persistent gap between demand and supply shows no sign of closing. Despite a slight dip in new tenant registrations in June, competition remains fierce. Many tenants are opting to stay put, reflecting both a lack of viable alternatives and the rising cost of moving. The number of new tenancies per branch fell slightly between May and June, underlining a stagnant and constricted market.
Yet amid this turmoil for renters, buy-to-let landlords are experiencing strong returns—particularly in high-demand urban centres where regeneration projects are drawing even more tenants. Properties are being snapped up quickly, with void periods now averaging just three weeks, a clear sign of how rapidly homes are being occupied.
What’s behind this housing squeeze? Many industry voices point to a policy landscape that is increasingly hostile to landlords, discouraging new investment and accelerating the exit of smaller, independent property owners from the market.
Nathan Emerson, CEO of Propertymark, warned that unless there is greater support for landlords, the trend of rising rents is likely to continue unchecked, especially in areas undergoing rapid growth and urban renewal.
“Without a significant shift in the government’s approach to rental housing, we’re going to see rents remain high and affordability deteriorate further,” he said. “This isn’t just about economics—it’s about people struggling to find a place to live.”
The situation is also being compounded by a slowdown in property investment. Phil Spencer, founder of Move iQ, stressed the need for a better balance in the housing market. “Seeing another dip in the number of privately rented homes available will likely not boost renters’ confidence,” he said. “Wages have failed to keep up with rents for years. We need to incentivise investment in rental housing and recognise the role of responsible landlords in addressing this national challenge.”
So far, however, government policy has largely failed to keep pace. Reforms aimed at improving tenant rights have been introduced piecemeal, while fiscal and regulatory pressures on landlords have increased—discouraging further private sector involvement just as demand is soaring.
Despite stable levels of rental arrears—just 2.8% of tenants were reported to be behind on payments in June—the broader picture is one of a deeply strained system.
Experts warn that unless urgent action is taken to boost rental supply, introduce a more supportive framework for landlords, and address the long-term affordability crisis, the UK risks deepening an already critical housing shortage.
For tenants, the message is clear: competition is fierce, rents are high, and relief is nowhere in sight.