The number of rental properties available across England fell by 12.1% during the third quarter of 2026, according to new analysis by Dwelly, highlighting an increasingly competitive rental market in many parts of the country.
Dwelly is one of the UK’s largest rental property management groups, with more than 15,000 properties under management.
The firm’s latest market analysis has found that available rental listings fell by 12% between Q3 and Q3 of this year. The research also reveals that rental availability has fallen by an average of 6.5% per quarter since the start of 2026, suggesting that the reduction in available stock is part of a wider trend rather than an isolated quarterly movement.
Dwelly believes that the adoption and continued evolution of AI-powered technology is becoming increasingly important in helping letting agents adapt to changing conditions within their local rental markets, particularly as fluctuations in rental supply and demand create different challenges from one area to the next.
The company is using its own AI-powered technology to reduce the administrative burden facing its growing network of acquired agencies, freeing up more time for agents to respond to emerging market trends, manage tenant enquiries, strengthen landlord relationships and proactively market available properties.
Rental availability falls across major urban markets
The research also found that some of the largest average quarterly reductions in available rental listings since the start of 2026 have been recorded in Bristol (-23.9%), West Yorkshire (-22.5%), Merseyside (-17.7%), South Yorkshire (-15.8%) and Leicestershire (-14.8%).
Nottinghamshire (-14.7%), the West Midlands (-12.8%) and Greater Manchester (-9.9%) have also seen substantial average quarterly reductions, highlighting the increasingly constrained availability of rental properties across a number of England’s major rental markets.
With fewer properties available to prospective tenants in many areas, Dwelly believes competition for rental homes is likely to intensify, placing greater importance on agents’ ability to manage enquiries, progress applications and communicate efficiently throughout the lettings process.
Some rental markets see availability increase
However, the research also highlights the contrasting conditions facing letting agents elsewhere in England.
Wiltshire has recorded the strongest average quarterly increase in rental availability since the start of 2026 (+17.4%), followed by West Sussex (+13.2%), Herefordshire (+9.0%), Suffolk (+7.8%) and Bedfordshire (+7.2%).
Dwelly believes that in areas where rental availability is increasing, agents face a different set of challenges, with a greater emphasis on effectively marketing properties, attracting suitable tenants and minimising void periods.
The company argues that reducing the time agents spend on repetitive administration can help them adapt to both sets of market conditions, allowing them to dedicate more attention to tenant enquiries, landlord relationships and the marketing of available rental properties.
Sam Humphreys, Head of M&A at Dwelly, commented:
“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. 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.
“This is exactly where we believe technology can make a meaningful difference. By removing much of the repetitive administration from the lettings process, we’re giving our acquired agency teams more time to focus on the parts of the job that really matter, whether that’s managing high levels of tenant interest or proactively marketing properties in more competitive areas.
“Ultimately, technology should make good letting agents better at what they do. Our focus is on giving established local agencies the tools and support to respond to their own market conditions, rather than expecting every agency to operate in exactly the same way.”
Data tables and sources
Dwelly analysis of available rental property listings across England, tracking quarterly changes between Q4 2025 and Q3 2026.
Source: Rightmove
