Tenants in England and Wales are facing unprecedented difficulties in securing affordable rental properties, with the market becoming increasingly tight. Landlords, on the other hand, believe that power has shifted decidedly in favour of tenants due to recent legislative changes – a view backed by a substantial majority surveyed in LRG's Spring 2026 Lettings Report.
The report reveals a stark contrast between landlords and tenants' experiences. A staggering 90% of landlords think the balance of power has tipped towards tenants over the past two years, with 61% citing a strong shift and 28% acknowledging a slight one. However, 25% of tenants still feel that landlords hold sway.
According to Allison Thompson, Chief Lettings Officer at Leaders (part of LRG), both perspectives have merit. Landlords are grappling with the impact of new laws designed to protect tenants' rights, including the abolition of fixed-term tenancies and 'no-fault' evictions under Section 21, as well as restrictions on upfront rent payments. Meanwhile, tenants are struggling in a market plagued by a severe shortage of available homes.
The report highlights the immense challenges faced by tenants. Among those who sought rental properties in the last two years, an alarming 78% found significantly fewer suitable options than expected. Affordability proved to be the main hurdle for 32%, while 22% cited a straightforward lack of available properties. A further 24% were confronted with both higher prices and reduced availability – a far cry from their expectations.
The financial strain on private tenants is evident, with an average rent-to-income ratio exceeding 36.3% in England, surpassing the widely accepted affordability threshold of 30%. This has resulted in significant financial pressure, impacting mobility as one in four tenants expressed a desire to move but was unable to do so over the past year. Among those who wanted to relocate, 10% cited unaffordability, while 6% struggled to find suitable properties and 9% ultimately decided against moving due to various reasons.