The supply of rental properties across Great Britain has slipped below last year’s level for the first time in four years, according to the latest figures from Rightmove.
During the second quarter of 2026, the number of homes available to rent was 1% lower than during the same period in 2025. The decline marks the first annual fall in rental stock since the market began recovering from the record-low supply levels seen after the pandemic.
Rightmove suggests the reduction is largely due to fewer landlords putting new properties onto the rental market, rather than homes being let more quickly. The change comes shortly after key measures within the Renters’ Rights Act came into force on 1 May, raising questions about how the legislation may be influencing landlord activity.
Supply and Demand Becoming More Balanced
Although rental stock has fallen slightly, the overall market is showing signs of becoming more balanced than it was in previous years.
Competition among tenants has eased considerably since its peak in 2022. On average, each available rental property now receives around 10 enquiries, compared with 11 a year ago and 22 during the height of the post-pandemic rental surge.
Despite this improvement, demand remains stronger than before the pandemic, when the average rental property attracted around five enquiries.
Regional Differences Remain
While the national picture suggests a more stable rental market, conditions continue to vary significantly across different parts of the country.
The North East and North West recorded the strongest annual rental growth, with advertised rents increasing by 4.1% over the past year. In comparison, the East Midlands and the East of England both experienced more modest annual growth of 1.5%.
London currently has the closest balance between available properties and tenant demand, with an average of eight enquiries for every rental home. Meanwhile, the North West continues to experience the greatest pressure, averaging 14 enquiries per property, highlighting the ongoing shortage of rental accommodation in the region.
Rents Continue to Reach New Highs
Alongside tighter rental supply, advertised rents continue to climb.
Rightmove reports that the average asking rent outside London increased by 1.9% during the second quarter of 2026, reaching a record £1,397 per calendar month. Compared with a year earlier, average rents outside the capital are now 2.3% higher, accelerating from the 1.6% annual growth recorded in the first quarter of the year.
While tenant competition has eased from the extreme levels seen in recent years, continued demand and limited supply are still supporting rental price growth across much of the country.
Looking Ahead
The latest figures indicate that the rental market is entering a new phase. Although competition has softened and supply and demand appear more balanced than during the post-pandemic boom, the number of available rental properties has begun to decline once again.
With the Renters’ Rights Act now taking effect and rental stock falling slightly year-on-year, the coming months will reveal whether this marks the beginning of a longer-term trend or simply a temporary adjustment in the market.
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