Rental stock across England has plummeted by as much as 42% across some areas of the market following the introduction of the Renters’ Rights Act, with more than 15,500 fewer homes now available to tenants compared with the previous quarter, according to new analysis by The Letting Partnership.
The Letting Partnership analysed rental market activity across England and found that the number of properties available to rent fell from 127,696 in Q2 2026 to just 112,190 in Q3 – a quarterly reduction of 12.1%.
The decline comes as the Renters’ Rights Act came into force on the 1st of May, bringing substantial changes to the way landlords and letting agents operate within the private rented sector.
Rental stock falls sharply across major markets
The national decline has been driven by some substantial reductions in rental availability across England.
The City of London has seen the largest quarterly reduction, with available rental stock falling by 42.4%, while Bristol has recorded a 36% decline.
Merseyside has seen rental availability fall by 30.5% quarter-on-quarter, with Greater Manchester down 20.5%.
Oxfordshire and the West Midlands have both seen stock fall by 19%, while Greater London has recorded an 18% quarterly reduction.
South Yorkshire has seen rental stock fall by 17.9%, followed by West Yorkshire at 16.9%, Nottinghamshire at 15.7%, and both Leicestershire and Tyne and Wear at 14.7%.
Chris Mason, CEO at The Letting Partnership, commented:
“The Renters’ Rights Act represented an enormous change for the private rented sector and, just months after its introduction, we’ve seen a pretty dramatic reduction in the number of homes available to rent.
More than 15,500 rental properties have disappeared from the market in a single quarter, equating to a 12% reduction in available stock, although this reduction has been far more pronounced in some areas.
One of the concerns throughout the build-up to rental reform was that the additional regulatory and compliance burden could deter landlords from remaining within the sector.
Such a notable reduction in rental stock availability so soon after the Act came into force is certainly going to add fuel to those concerns.
For landlords who remain, the sheer scale and complexity of their responsibilities has increased substantially and we expect this to further strengthen the role of professional letting agents, particularly amongst those landlords who no longer feel comfortable navigating the regulatory landscape alone.
However, that also means more responsibility for the lettings industry. As agents take on more fully managed properties, they are also taking responsibility for more tenancies, processing more rent and client money and shouldering a greater administrative and compliance burden.
As the sector adjusts to life under the Renters’ Rights Act, it’s vital that the systems, processes and client accounting infrastructure sitting behind the industry are capable of keeping pace.”
