Landlords face growing competition among prospective tenants as the number of homes available to rent across England fell by 12.1% in the third quarter of 2026.
Bristol had the biggest average quarterly fall in listings since the year began, according to property management group dwelly.
Wiltshire saw the fastest increase, while England recorded an average quarterly decline of 6.5%.
Where fewer homes are available, the company expects tenants to face more competition, leaving agents under greater pressure to respond to enquiries and move applications along. Accommodation for Students reported in July that the supply of homes to rent had fallen for the first time since 2022, according to Rightmove.
Tenant competition and voids
Sam Humphreys, the firm’s head of M&A, said: “The rental market is far from uniform, and what we’re seeing is that letting agents are having to navigate very different conditions depending on where they operate.
“In areas where available rental stock is falling, competition for properties can become more intense, placing greater importance on how quickly and effectively agents manage enquiries, progress tenancies and communicate with prospective tenants.”
He added: “But where stock is increasing, the challenge is different.
“Agents need to work harder to market available properties, attract the right tenants and minimise the time a property spends empty.”
Where listings fell
Listings in Bristol fell by an average of 23.9% each quarter, with West Yorkshire recording a 22.5% decline.
Merseyside’s reduction was 17.7%.
Elsewhere, South Yorkshire saw a fall of 15.8%, compared with 14.8% in Leicestershire.
Available listings also declined in Nottinghamshire, the West Midlands and Greater Manchester.
Wiltshire recorded an average quarterly increase in availability of 17.4%, followed by West Sussex at 13.2%, with Herefordshire, Suffolk and Bedfordshire also registering rises.
Supply and rent pressures
However, Propertymark’s latest Housing Insight report also found that a dip in rental home supply is playing a part in private rented sector pressure.
It found that there’s an average of nine applicants for each available home, as the number of properties to let per member branch dipped to 10.86.
The Royal Institution of Chartered Surveyors’ September survey also recorded a +23% net balance of members reporting increased tenant demand, with the measure accelerating for a third month running while landlord instructions remain negative.
Also, a +37% net balance of its members are expecting rents to rise in the coming quarter, down from +44% in August but above the first-half average of +27%, which is partly down to falling rental supply.
Priorities for student landlords
The managing director of Accommodation for Students, Simon Thompson, said: “While there is some interesting data in the Dwelly report, student landlords should assess their immediate catchment area before assuming a national shortage will make finding and tenant easier.
“Strong interest does not remove the need for affordability checks and careful referencing.”
He added: “In places offering greater choice, presentation and realistic pricing could determine how quickly a home is occupied.
“The practical priority is securing a dependable income without allowing avoidable delays that eat into returns.”
