Rental stock falls 12% after rule changes

England’s rental stock has declined by 12% in the quarter following implementation of the Renters’ Rights Act, according to figures from The Letting Partnership.

Analysis of rental market activity 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 Renters’ Rights Act came into force on 1st May, introducing new costs and compliance requirements for landlords.

The decline in rental accommodation varied by English region.

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, described the fall as “pretty dramatic” and pointed to the data as evidence that fears about landlords exiting the sector may be coming true.

“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,” he said.

“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.

“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.”