A new report highlights a growing disparity in the UK's private rented sector, where landlords perceive a shift in power towards tenants, yet the majority of renters continue to face substantial hurdles in finding suitable accommodation. Research from LRG's Spring 2026 Lettings Report indicates that 89% of landlords believe tenants now wield more influence in the market. This perception is largely attributed to legislative changes introduced through the Renters' Rights Act, which includes the abolition of Section 21 'no-fault' evictions, the ending of fixed-term tenancies, and new restrictions on advance rent payments.
However, the experience on the ground for tenants appears to be markedly different. The same report found that 78% of renters who have sought a new property over the past two years encountered fewer options than anticipated. The primary obstacles cited by these tenants were affordability and a stark lack of available homes, suggesting that while legal protections have strengthened, the fundamental challenge of securing housing persists.
This disconnect is further underscored by data showing that a quarter of tenants desired to move within the last twelve months but were ultimately unable to do so. Of these, 10% found moving unaffordable, 6% couldn't locate anything suitable, and 9% chose to stay put despite wanting to relocate. Only 5% of tenants actually moved during this period. This trend aligns with the ONS Price Index of Private Rents, which recorded an average monthly private rent increase of 3.5% to £1,381 in the twelve months leading up to April 2026, intensifying financial pressure on those needing to move.
The issue of housing supply remains critical. Rightmove data indicates that available rental stock is 33% below levels seen a decade ago, while Zoopla reports that supply is still 20% to 30% below pre-pandemic levels across every region of the UK. While any gradual improvement in supply is welcomed by tenants, it is evidently insufficient to meet current demand. This sustained shortage means that even with enhanced legal rights, the practical reality for many renters is a highly competitive and expensive market.
For those considering homeownership as an alternative, the prospects offer little immediate relief. When surveyed about a hypothetical significant fall in local house prices, 33% of tenants stated they would still be unable to buy, regardless of the drop. Only 16% indicated they would actively look to purchase immediately. This highlights the deep-seated affordability challenges that extend beyond the rental market, impacting aspirations for homeownership.
Allison Thompson, chief lettings officer at Leaders (part of LRG), commented on the findings, stating that both landlords and tenants are accurately describing the same market, but from different perspectives. She emphasised that landlords feel the impact of new legislation, while tenants contend with a severe shortage of available homes. Thompson concluded that addressing one issue without the other would be insufficient, advocating for more 'good landlords' providing 'good properties' supported by 'good agents' to foster effective relationships.