Rents Up, Options Down: The Tenant Squeeze Continues

The rental market might be cooling ever so slightly, yet for most tenants it still feels like nothing much has changed. Yes, there has been a small dip in average rents recently, the first in years, but it is hardly the kind of drop that makes a real difference to people’s pockets. A few pounds less each month is welcome, although for most it is quickly swallowed up by other rising costs.

Some parts of the country, like London, have seen more of a shift than others. Wales, the North East and Yorkshire have felt it too, although only just. The trouble is, even with these tiny adjustments, rents are still far higher than they were just a few years ago. For someone who has been renting the same flat for five years, the idea of paying today’s rates for a similar property can feel almost unthinkable.

Price is only one part of the story. What is making life harder for renters is the lack of choice. The pool of available homes has been shrinking, with fewer landlords putting properties up for let. In many towns and cities, the competition for what is available can be fierce. People are queuing for viewings, making quick decisions, and in some cases offering above the advertised rent just to secure a roof over their heads.

This tightening of supply has been building for some time. Many landlords have chosen to sell up, put off by higher costs, new regulations, and the feeling that the climate for letting property is becoming less favourable. Others have decided to move into short-term lets, where they feel there is less red tape and potentially higher returns.

The roots of the issue go back decades. In the late 1970s and 80s, the balance shifted away from council housing and towards a greater reliance on the private rental market. When buy-to-let mortgages arrived in the mid-1990s, it opened the door to many more small-scale landlords. This increased the size of the sector but did not always improve its stability. Tenants have often found themselves with limited security, with rules such as “no-fault” evictions keeping many on uncertain ground.

For tenants, the experience of renting today is about more than just numbers on a spreadsheet. It is the feeling of having to compete constantly for a home, the worry of rent increases arriving without much notice, and the challenge of planning for the future when the future feels dependent on someone else’s decision. Even those who find a good property and a fair landlord know the balance can shift at any time.

So is the recent dip in rents the start of a real change? It would be nice to think so, yet the bigger picture suggests it may be just a pause. The shortage of available homes remains, and demand has not gone away. As long as that imbalance remains, tenants are likely to continue feeling the squeeze, even if the figures on paper suggest the market is softening.

The rental market is deeply woven into the wider housing story. It reflects long-term policy decisions, changing economics, and the simple reality of supply and demand. What happens next will depend on whether more homes come onto the market, whether new regulations truly balance the interests of tenants and landlords, and whether affordability can improve in a meaningful way.

Hosted by Gareth Wax and joined by Hamish McLay, this week’s Property Matters will look at what is really driving these shifts in the rental market, the policy background that has shaped the choices tenants face today, and what the future could hold. Join us live on Tuesday 19th August at 1pm for a lively discussion that will be of interest to tenants, landlords, agents and anyone curious about where the housing market is heading.

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