By If you are a property investor and are worried that investing in buy-to-let is no longer worth it, it may be worth reading the Spring lettings report from Leaders Romans Group (LRG).
According to their survey, Allison Thompson, Chief Lettings Officer, says:
“Nine in ten landlords believe the balance of power in the rental market has shifted in favour of tenants over the last two years – yet a quarter of tenants still feel landlords hold the upper hand” (LRG)
However, the research suggests that, while legal protections for tenants may have increased, this may not help much if tenants still cannot find the homes they need to rent.
Allison explains:
“78% found fewer choices than expected. For 32%, the main barrier was affordability. This finding aligns with ONS data showing that…for 22% of tenants, limited availability [of rental properties] was the main barrier, with a further 24% finding far less than expected on both counts. Legislation can shift the terms of renting – but it cannot conjure homes that are not there.”
More worryingly, the report says that ‘25% of tenants hoped to move in the last 12 months’, but:
- 10% could not afford to move
- 6% could not find anything suitable
- 9% wanted to move but ultimately chose to stay
As a result, only 5% of tenants actually moved when they wanted to.
And it is not just the tenants staying in their current rental home who lose out when people cannot move.
It also makes life difficult for tenants coming into the market. If fewer rental homes become available, those looking for somewhere to live may have even fewer options. This can leave people stuck in unsuitable accommodation, sofa surfing, or having to move back in with family.
Does a more stable buying market help tenants get on the ladder?
With the sales market not moving at the speed it has in previous years, and with some property prices either falling or sitting below their 2022 levels, you might think this would help more tenants buy their own home rather than remain in the private rented sector.
However, the report suggests this is not necessarily the case:
- 33% of tenants said they still could not buy, regardless of market conditions
- Only 16% said they would look to buy immediately
This shows that, even when the sales market is quieter, buying is still considered out of reach by some tenants.
In their view, affordability remains a major barrier. Deposit requirements, mortgage affordability checks and day-to-day living costs can all stop renters from being able to move from renting into home ownership.
Will things be easier for tenants for the rest of 2026?
Sadly, that’s unlikely.
Although there are more rental homes available than in 2025, and average earnings are outpacing rental growth for the third year in a row according to Zoopla, most research still shows that the number of properties available to let remains 20% to 30% lower than before the pandemic.
That means tenants may still face:
- Limited choice
- Higher rents
- Tough competition for good-quality homes
- Difficulty moving when their circumstances change
- Fewer options in the areas where they need to live
For landlords and investors, this is an important point.
Even with more regulation, higher costs and changing tax rules, tenant demand remains strong in many areas because the supply of suitable rental homes is still not meeting need.
What does this mean for landlords and investors?
For good landlords, this market could still offer opportunities.
The key is to understand what tenants in your area actually need. That means looking carefully at:
- Local rental demand
- Affordability
- Property type
- Condition and energy efficiency
- Transport links
- Schools and local services
- Likely tenant profile
A rental property that is well located, fairly priced and properly maintained is still likely to appeal to tenants, especially in areas where choice is limited.
However, investors need to make sure the numbers work. Higher mortgage rates, maintenance costs, compliance requirements and tax changes all need to be factored in before buying.
The rental market still needs more suitable homes
The big message from this research is simple: tenants may have more rights, but that does not mean they have more choice.
If there are not enough homes to rent, tenants still struggle.
For many renters, the issue is not just whether landlords or tenants have more power. It is whether they can find a home that is affordable, suitable and available when they need it.
What are you finding as a landlord, letting agent or tenant?
Are tenants finding it easier to move, or is the shortage of rental homes still causing problems in your area?
Meet the lettings experts at LRG
As a key sponsor of the 2026 National Landlord Investment Shows, LRG will be sharing expert lettings knowledge throughout the year. Meet the team in person at every show or access their latest insights through the Landlord Investment Show Community Hub.
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