This report is based on insight gathered from private renters and letting agents across the UK, as well as Reposit’s proprietary data. The research explores tenant sentiment, affordability pressures and market dynamics shaping behaviour within the lettings sector.
Report: Renting Under Pressure
How affordability, regulation and risk are impacting agents, landlords and tenants.
What's inside?
The experiences of letting agents and their practical understanding of how affordability constraints shape both landlord and tenant decision-making give valuable insights.
The findings reflect both lived tenant experience and frontline agent observations, providing a rounded view of current conditions in the private rented sector.
Introduction
The private rented sector is moving into a new phase. After years of supply shortages, rising rents, and legislative uncertainty, we’re starting to see some stabilisation.
More homes are coming onto the market in some regions, and rental price growth has slowed. There’s more clarity around the Renters’ Rights Act than 12 months ago, but landlords, agents and tenants are navigating a new regulatory landscape and how the legislation actually works on the ground is their next big question.
This report brings together tenant surveys, partner observations, and our own proprietary data to paint a clear picture of the sector today, and for this, I’d like to extend a huge thank you to the agents who took part in our research. We found a market under pressure, shaped by tenant affordability constraints and landlords becoming increasingly risk-aware, particularly around arrears.
At the same time, agents report growing administrative and compliance demands. We know many are exploring how technology can help them work more efficiently and deliver value to both landlords and tenants.
This report contains insights from our partners as well as specific case studies to deep dive into how agents are adapting to pressures in the market, which we hope you will find useful.
In addition, the ‘unintended consequences’ of the Act have been widely debated. With Section 21 gone, Section 8 will become the main route for possession in cases such as rent arrears but the system hasn’t yet been tested and there are real questions about the capacity of the courts. Many also expect upward pressure on rents and increased legal risk, particularly around discrimination claims. For a deeper legal analysis, Consultant Solicitor Ryan Heaven provides an excellent overview on page 22.
While our hard data reveals the challenges among tenants, landlords and agents, we believe it also highlights the opportunities for those willing to embrace change. Whether it’s offering flexible deposit solutions, educating landlords through the new regulations, or using proptech to streamline operations, the agencies that thrive will be those who combine expertise with innovation. We hope this report gives you practical insight and sparks ideas that help your business thrive in this new environment.
Greg Tsuman
Managing Director, Lettings at Martyn Gerrard based in North London
“From what I’m seeing on the ground, it’s still all about a lack of supply. Landlords are continuing to exit and there’s very little new rental stock coming through, with some of their properties being sold to first-time buyers. Tenant demand hasn’t really eased, so competition is still strong at around 20 applicants per property. That’s nowhere near the levels we saw back in 2021 of 45 to one, but it does mean it’s still very much a landlord’s market.”
Key Findings From Agents
Landlords showing increased sensitivity to risk
Admin and compliance burdens for agents are increasing
Landlord stock levels are diverging across the UK market
Main Reposit benefits are extended landlord cover with reduced admin and compliance
Eloise Wallace
Lettings Administrator & Referencing Team Leader, at Pattinson in the North East
“The main concern I hear from landlords is about losing flexibility if a tenancy goes wrong, the idea of having to rely on Section 8 and face a potentially lengthy legal process worries them most.
That’s really where the nervousness sits. That said, many have moved from resistance to adaptation. This time last year everyone was questioning how the legislation would play out but now it’s more about getting on with it and making it work.”
Key Findings From Tenants
High upfront deposit costs are constraining home moves within the rental market
Around half of tenants are spending 40% or more of their take-home pay on rent
Tenant expectations around rental home affordability are becoming more negative
