The rental market this year has shifted in a direction that benefits tenants more than at any point since before the pandemic. Supply of available rental properties is up 11% year-on-year according to recent Zoopla Rental Market data, enquiries per available property have fallen to 5.6 from a peak of 15.5 in 2022, and the average time a property sits available before being taken has extended to approximately 20 days. For tenants who spent 2022 and 2023 competing in a market where properties disappeared within hours and bidding wars were commonplace, those figures represent a genuinely different environment.
Understanding what has driven the supply improvement, where it is most pronounced, and how to use the current conditions effectively is the most practically useful knowledge any tenant currently searching can have.
What has driven the supply increase
The year-on-year increase in available rental stock reflects several converging factors. Some landlords have chosen to sell their properties in response to regulatory changes introduced by the Renters' Rights Act and approaching EPC compliance requirements, releasing stock into the sales market rather than continuing to let.
Others who took properties off the lettings market during the Renters' Rights Act implementation period have returned them to the market once the regulatory picture became clearer.
At the same time, the Build to Rent sector continues to deliver new purpose-built rental homes at scale, adding supply particularly in urban markets. Some of the improvement also reflects longer void periods between tenancies, meaning properties that were previously re-let almost instantly are now sitting available for longer.
Where availability has improved most
The supply improvement is not evenly distributed. Rents are rising fastest in more affordable regional markets, where tenant demand remains strong and affordability pressures continue to shape competition.
It is in higher-value markets, where rental demand was previously stretched, that the balance between supply and demand has shifted most noticeably in tenants' favour.
London remains the exception. Rental demand has increased recently, with higher mortgage rates keeping many potential first-time buyers renting for longer. Tenants searching in London should not assume that the national improvement in availability applies equally to their local market.
Outside the capital, the picture is more consistently favourable to tenants. However, the underlying shortage of rental homes remains significant, meaning improved availability represents a moderation rather than a surplus of choice.
How tenants can use the current conditions effectively
Outside London, improved supply gives tenants advantages that were not available during the peak conditions of 2022 and 2023. The time available to consider a property has increased, allowing more measured decisions rather than immediate commitments.
Negotiation is also more realistic. Tenants who understand comparable local rents, prepare their paperwork, and present themselves as reliable applicants are better positioned to discuss terms where landlords have more choice.
Having payslips, bank statements, and previous landlord references ready can make a significant difference. Clear communication, quick responses, and demonstrating genuine interest in a property all help applicants stand out.
What to watch for
The current improvement in supply may not continue indefinitely. The structural shortage of rental homes remains, and local markets can move independently of national trends.
Tenants currently searching should make the most of the increased choice available while recognising that conditions can change. A market with more availability today may not offer the same level of choice in the future.
Looking for your next rental home? Talk to our lettings team today
