There are some positive indicators for the future supply of rental homes, including much greater availability of homes as the year progresses.
According to property portal Rightmove, the total number of available homes to rent is currently nine per cent higher than last year.
However, looking longer term, the number of available rental properties has dropped by a third compared with 10 years ago, illustrating the chronic shortage of rental properties.
The latest available snapshot of UK Finance data, which tracks both remortgages and new buy-to-let mortgages, suggests that the rate of rental investment activity is the most positive it’s been since 2022.
The number of new buy-to-let mortgages taken out to purchase rental homes in the year to October was 13 per cent in 2025 versus the same period in 2024, while the number of remortgages increased by 23 per cent.
It’s a positive sign that there is both new investment, and landlords choosing to keep existing rental homes, according to Rightmove.
In terms of buying activity, the competition between tenants for rental homes has cooled and is less fierce than during the pandemic years.
Last year’s average of 10 enquiries for every available rental home is higher than the pre-pandemic 2019 average of six, but lower than 2024’s figure of 14.
However, the balance between supply and demand is likely to feel tighter in some areas more than others.
While London had an average of seven enquiries per property in 2025, the North West and Scotland had over double this number at sixteen.
Rightmove’s new daily buy-to-let mortgage tracker highlights the improving affordability for landlords looking to invest in rental property, which could support an increase in rental supply to the benefit of tenants.
The average two-year buy-to-let mortgage rate for a landlord with a 25 per cent deposit is 4.84 per cent, compared with 5.51 per cent last year.
Looking ahead to the rest of 2026, Rightmove predicts that average advertised rents will rise by a further two per cent across the year.
The balance between supply and demand has significantly improved since the pandemic years, which has been a key driver of 2025’s lower-than-usual yearly rent growth.
However, there is still a fundamental shortage of rental properties, which Rightmove expects to keep rents ticking upwards in 2026.
Rightmove’s property expert Colleen Babcock says: “There is still a long-term shortage of available rental homes, but it looks like landlords are taking advantage of cheaper available mortgage rates, and more available homes will benefit tenants.
“Existing tenants or those looking to rent their own home for the first time are likely to experience a much more settled and balanced market than a few years ago, when the competition to secure a home was frenetic.
“There is much greater availability of homes, and fewer tenants to compete with now, which should hopefully make the experience more positive for renters.”