It is generally accepted by both left and right of the political spectrum, the UK rental market is experiencing a severe supply / demand imbalance, where demand for rental properties significantly outstrips supply.
The situation has led to increased competition for rentals and higher rental prices at a time when social house building has been in decline, and for many years. Now, while tenant numbers are steadily growing, the number of private rented properties has been shrinking. The result is evictions, property sales and homelessness, which in turn puts pressure on councils to find temporary housing.
Councillor Tony Cox argues that government policies have made life so difficult for private landlords that many are leaving, or at the very least, few have been investing.
Some landlords are exiting the market due to factors like increased taxes, regulations, and rising costs, further reducing the available rental stock, while others hesitate to invest given the prospect of more regulations and more attractive returns elsewhere.
Of course, the supply / demand imbalance is not uniform across the UK. Some regions, for example in the Northeast of England, may have more properties available to rent than in other regions, so the issues there for tenants are not so stark.
But while there are variations, the fundamental imbalance problem is in general a UK-wide issue which is expected to persist. It will continue to put pressure on rental prices and tenant affordability for the foreseeable future.
In a council meeting which approved five more selective licensing areas across Liverpool - in central Birkenhead, south Egremont, Hamilton Square, lower Tranmere, Tranmere Lairds, and north Tranmere – one Conservative Councillor, Tony Cox, sitting on the Wirral economy regeneration and housing committee, hit out at past and present governments alike with his “battered landlords” claim.
Mr Cox, who is also a landlord himself, made the comments during a debate on whether the Council should approve the Property Pool Plus social housing allocation scheme, which was ultimately approved unanimously.
Councillor Cox described the city’s social housing situation, with its long waiting lists, like “rearranging the deck chairs on the Titanic”, though he praised the hard work of council officers. While pointing out that by far most of the rented property in the Wirral is provided by the private rented sector (PRS), he lamented government policies over many years.
The Liverpool Echo points out that the 2021 Census shows 15.4% of people in Wirral rent with a social landlord, while 19% of people have private landlords. However, Councillor Cox said he had seen reports where there could be a 24% reduction in private landlords, brought about, he thinks, by the coming new legislation the Labour government was bringing in.
“The reality is that since 2017, private landlords have been “absolutely battered” by subsequent governments and it’s about to continue,” said Councillor Cox, “The pressures are only going to get worse.”
He called for more data on the reasons behind increases in Liverpool homelessness, arguing that people were reporting being made homeless because landlords are selling their properties. He said he had had personal experience of a member of the public in this situation.
It was revealed that council waiting lists stretched to over two years for social housing, with another councillor at the meeting calling for the building of more social housing and council officers confirming that new supply had not risen at all in recent years.
Labour councillor Janette Williamson commented that the lack of private rentals was “forcing people to live in one room with a shared bathroom or kitchen facilities which is just not acceptable in 2025.” These, she said, “are working people”.
Councillor Cox - to put his remarks in context - said that he wasn’t trying to be political when he commented on the coming legislation – The Renters’ Rights Bill:
“The upcoming legislation that are about to deal with, some of it for the better, some of it most definitely for the worse. In the five-year plan they're talking about a 33% reduction. That is only going to exacerbate what you’re actually seeing, and the challenge is to actually find more registered social landlords.”
According to the latest available professional letting agent’s body, Propertymark’s “Housing Insight” report - based on a survey of its property agency members across the UK - the average number of [tenant] registrations per member branch was 93 in April 2025 (Figure 20).
Demand continues to significantly outpace supply, says the report, with the average number of applicants per member branch at 7 people for each available property (Figure 23).
One member branch principle from the Southwest stated that they were,
“…still seeing more properties leave the sector than join. Although we do now start to see some activity of landlords now buying! Perhaps the volatile stock market has now fed back to investors. Many investors are still more mature, none are in their 30s, most are in the 50-60 age bracket.”
On the other hand, another Propertymark branch member from the East Midlands said:
“In my 30+ years’ experience I have not known landlords to be so hesitant about their future within the PRS. Escalating costs, tax, legislation, and a lack of confidence that things are going to get any easier are driving large numbers of landlords away.”
The presenter, author, businessman and property investor is quoted in the report, saying:
“For renters, there are key indicators that suggest that rent levels have peaked in certain areas of the country, which may provide some with the reassurance that their rent will potentially better stabilise.
“However, we know that in general, across the UK as a whole, demand is far outstripping supply of homes within the private rented market, and to ultimately make renting more affordable in the long term, Governments need to encourage and support investment rather than overstretch landlords beyond their ability to operate moving forward.
“In my view, the current situation presents a serious and urgent challenge for society at large, influencing the decisions and options available to individuals across the board. It’s not just tenants or landlords who are affected—the consequences are already being felt by both current homeowners and those hoping to enter the property market. As it stands, the state housing system is struggling to keep up, and without meaningful change, the crisis will only deepen.”
Recent statistics have revealed that the UK population is rising faster than expected, and the research shows why this is likely to lead to even more tenants seeking rental homes, it’s the ones at the bottom of the pile – those on low incomes and on benefits that will suffer most.
The figures from the Office for National Statistics (ONS) show that the UK population could hit nearly 75 million by 2036, a rise of almost 7 million people between 2021 and 2036.
The current forecast shows how the UK population could reach 70 million well before the end of the decade, that’s 10 years sooner than had been previously expected. It will inevitably lead to a steep rise in the demand within the UK housing market, and particularly steep growth in the number of privately renting tenants.
The Liverpool councillor highlights the plight of landlords having been “absolutely battered” in recent years. The evidence tends to support his claim – perhaps government ministers should take careful note?
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