The number of homes available to rent across England has plunged by at least 15,500 in just three months, with some areas recording falls of more than 40%.

Analysis by The Letting Partnership reveals 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%.

The City of London has seen the largest reduction, with available rental stock falling by 42%, while Bristol recorded a 36% decline, Merseyside fell 30% and Greater Manchester was down 20%. Other big losers were Oxfordshire and the West Midlands, South and West Yorkshire and Nottinghamshire.

Meanwhile, a survey by flatshare site SpareRoom finds that more than a third of landlords in England (36%) are now reducing their portfolios, rising to 53% among large landlords. More than a quarter (27%) are in the act of leaving the rental market altogether, which rises to 44% among single-property landlords.

Battered

SpareRoom director Matt Hutchinson says that for all the good it has done tenants so far, the Renters’ Rights Act has also battered supply and forced up asking rents.

“It’s unlikely this will be resolved any time soon because landlords are still reacting to the changed landscape," he says. "Some have told us that while they’re not selling up right now, they don’t plan to re-let when their current tenants leave.”

Burden

One of the concerns throughout the build-up to rental reform was that the additional regulatory and compliance burden could deter landlords from remaining within the sector, says The Letting Partnership’s CEO Chris Mason.

“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 says.

“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.”

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