Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.

Industry Expert Warns Against Treating Landlords and Tenants as Opponents

An industry expert has cautioned that policymakers should treat landlords and tenants as if they are on the same side, warning that failure to do so could lead to a shortfall of rental properties. This comes as new data shows tenant demand in the UK rental market has rebounded for the first time in two years.

According to the latest Landlord Trends data from Pegasus Insight, 63% of landlords now describe tenant demand as either ‘very strong’ or ‘quite strong’, an increase from 58% in the first three months of 2026. However, this rise in demand is occurring at a time when many landlords are reconsidering their position in the private rented sector.

Mark Dawson, Managing Director at evictions specialist AST Assistance, highlighted that the strengthening demand is not necessarily positive news for the sector. He noted that more landlords are choosing to sell their properties due to declining profitability and stricter regulatory changes associated with the Renters’ Rights Act 2025.

Dawson warned that if the trends of rising tenant demand and decreasing landlord supply continue, tenants could face fewer available rental properties, increased competition, and renewed upward pressure on rents. He referenced recent figures showing an average of 17 tenants for every rental property in the UK.

Dawson suggested that the current disparity between supply and demand should prompt policymakers to consider the rental market as a whole, rather than viewing landlords and tenants as being on opposing sides. He emphasised that rising tenant demand could become problematic if landlords are unable to provide enough homes to meet this demand.

These developments are particularly relevant for UK letting agents and inventory clerks, who may face increased challenges in managing tenancies and property availability as market pressures continue.