Nine in ten landlords believe the balance of power in the rental market has shifted towards tenants over the last two years. A quarter of tenants, however, still feel landlords hold the upper hand. According to new research from LRG, both groups are describing the same market accurately, just from very different positions.
The Spring 2026 Lettings Report, drawing on responses from 650 landlords and tenants across England and Wales, finds the divergence runs deeper than perception. Some 61% of landlords say power has shifted strongly towards tenants, with a further 28% saying it has shifted slightly.
Only 1% feel it has moved strongly in their favour. For landlords, the cause is clear: the Renters' Rights Act has fundamentally changed how letting works, abolishing fixed-term tenancies, ending Section 21, and restricting advance rent.
For tenants on the ground, though, new legal protections do not always translate into greater practical choice. Of those who searched for a rental property in the last two years, 78% found fewer options than expected.
Affordability was the main barrier for 32%, a finding consistent with ONS data showing private renters in England spend 36.3% of their median household income on rent, above the 30% affordability threshold. A further 22% cited limited availability, and 24% encountered both problems combined. Legislation can shift the terms of renting, but it cannot conjure homes that are not there.
That shortage carries a direct human cost. A quarter of tenants wanted to move in the last twelve months but were unable to: 10% couldn't afford to, 6% couldn't find anything suitable, and 9% wanted to move but ultimately chose to stay. Only 5% actually moved in the period.
ONS data from the Price Index of Private Rents shows average monthly private rents rose 3.5% to £1,381 in the twelve months to April 2026, adding further pressure on those who need to move but cannot stretch their budget.
Homeownership offers little relief. Asked what they would do if house prices in their area fell significantly, 33% of tenants said they still could not buy, regardless, with only 16% saying they would look to purchase immediately. The supply picture offers some cautious grounds for optimism.
Rightmove reports available rental homes are 9% higher than a year ago, and Zoopla's June 2026 Rental Market Report notes that 2026 is set to be the third consecutive year in which earnings have outpaced rent growth.
Yet stock remains 33% below where it was a decade ago, and between 20% and 30% below pre-pandemic levels in every region. Gradual improvement is welcome, but it is not yet enough.
"What this data shows is that landlords and tenants are both describing the same market accurately; they are just experiencing it from different positions," said Allison Thompson, chief lettings officer at Leaders, part of LRG (pictured).
"Landlords feel the weight of legislation that has genuinely shifted protections towards tenants. Tenants feel the weight of a market where there aren't enough homes to choose from. Both things can be true at once.
"Solving one without the other will never be enough. What the market needs is more good landlords, letting good properties, supported by good agents who know how to make the relationship work for everyone."
