Landlords and tenants shouldn’t be treated ‘like opponents’
Tenant demand is strengthening while many landlords are questioning their own future, according to AST Assistance's Mark Dawson.
Policymakers should treat landlords and tenants as if they are on the same side or risk a shortfall of rental properties, an industry expert claims.
It comes as the latest Landlord Trends data from Pegasus Insight, shows tenant demand has rebounded for the first time in two years.
The figures showed that 63% of landlords now describe tenant demand as either ‘very strong’ or ‘quite strong’, up from 58% in the first three months of 2026.
We are seeing demand strengthen at a time when many landlords are questioning whether they want to stay in the private sector.”
But the improvement in demand comes as the supply of homes in the Private Rented Sector (PRS) remains under pressure amid warnings of exits due to the Renters’ Rights Act reforms.
Under pressure
Mark Dawson (pictured), Managing Director at evictions specialist AST Assistance, said this may create an issue for the private rented sector.
He says: “The new Pegasus insight figures on rising tenant demand are not as promising as they may initially appear. We are seeing demand strengthen at a time when many landlords are questioning whether they want to stay in the private sector.
“More landlords than ever before are choosing to sell their properties due to a decline in profitability and the strict regulatory changes associated with the Renters Rights Act 2025.
Fewer rental properties
“If these two trends continue to grow in opposite directions, tenants will ultimately feel the consequences through fewer rental properties, more competition and renewed upward pressure on rent. This is especially concerning when considering the recent figures that show an average 17 tenants to one rental property in the UK.”
Dawson said the disparity between supply and demand should signal a turning point for policy makers to look at the rental market as a whole instead of treating landlords and tenants as opposite sides.
He adds: “Rising tenant demand might appear as good news for the rental sector, but it becomes a problem if landlords aren’t able to provide enough homes to satisfy this demand.”
