Tenant demand is rising again. New research from Pegasus Insight shows that 63% of landlords now describe demand in their area as strong, its highest level in two years. Almost three in ten say it is “very strong”, yet landlords remain more likely to sell properties than purchase them.
At the same time, rents are continuing to increase. The latest Office for National Statistics figures show that the average UK private rent rose by 3.7% in the year to July 2026, reaching £1,393 per month. In England, the average now stands at £1,451.
These two trends are closely connected. When demand rises but the number of available homes fails to keep pace, tenants face greater competition, less choice and higher rents.
Yet there is a contradiction at the heart of the rental market. We repeatedly hear warnings about landlords selling and the damage that shrinking supply will cause, while almost every change imposed on the sector expects those who remain to absorb ever-increasing costs, risks and responsibilities, without considering what would make their continued participation viable.
We cannot continue to express concern about landlords leaving while operating a system that increasingly encourages them to do exactly that.
Higher standards require sustainable delivery
The rental sector has changed significantly in recent years. Landlords are navigating higher borrowing and maintenance costs, more demanding compliance requirements and a growing body of regulation.
The Renters’ Rights Act has introduced another substantial shift. The reforms are intended to give tenants greater security and improve standards, which are important aims. However, delivering those improvements also places more operational and administrative responsibility on landlords.
Individually, many of the obligations placed on landlords may be reasonable. Collectively, however, they have changed what it means to own and manage a rental property.
For some professional landlords, adapting their businesses is possible. For smaller landlords, particularly those with one or two properties, the cumulative burden is enough to make them question whether remaining in the market is worthwhile.
When those landlords sell, the property does not necessarily remain within the private rented sector. The result may be one fewer home available to a tenant, even though the underlying need for rental accommodation has not disappeared.
Rising rents should not simply be viewed as evidence that landlords are benefiting from current conditions. They are also a warning that housing supply is failing to meet demand, with the consequences ultimately felt by tenants who are already struggling with affordability.
Landlords need viable alternatives to selling
If we want landlords to stay, we must make it possible for them to meet higher standards without personally carrying every aspect of the financial, regulatory and day-to-day management burden.
That means looking beyond the traditional choice between self-managing a property, using a conventional letting agent or selling altogether. The sector needs a broader range of professional operating models that offer landlords greater certainty while protecting tenants and maintaining good-quality homes. Guaranteed rent is one such model.
Under a properly managed guaranteed rent arrangement, a landlord receives an agreed rent for the duration of the contract, regardless of whether the property is occupied. The provider takes responsibility for finding suitable tenants, managing the tenancy and dealing with the day-to-day operation of the property.
For landlords, this provides predictable income, fewer administrative demands and protection against void periods. It can make retaining a rental property more manageable, particularly for those who do not want to operate as full-time professional landlords.
However, this is not only about making life easier for property owners. A successful model must also work for tenants and the organisations responsible for meeting housing need.
Councils across the country are under intense pressure to secure suitable homes for families, while growing numbers of households are living in temporary accommodation. Partnerships with experienced guaranteed rent providers can give local authorities access to a dependable supply of privately owned homes without requiring them to purchase or directly manage those properties.
Tenants benefit from a professionally managed home, a clear point of contact and greater stability. Landlords gain confidence that their property and income are being looked after. Local authorities are able to access accommodation for households that urgently need it. That alignment of interests is what makes the model valuable.
A functioning rental market needs partnership
Guaranteed rent will not solve the housing shortage on its own, and it will not be the right choice for every landlord or every property. We still need more housebuilding, appropriate investment and policy that recognises the important role played by responsible private landlords.
However, operating models that reduce uncertainty and distribute responsibility more effectively must be part of the discussion.
For too long, the housing debate has sometimes treated tenant protection and landlord confidence as opposing objectives. They are not. Tenants need secure, well-managed and affordable homes, but those homes cannot be provided sustainably if responsible landlords continue to conclude that selling is their only practical option.
The question should not be how much more responsibility landlords can absorb. It should be how the sector can help them meet those responsibilities successfully.
If tenant demand is strengthening while rental supply remains constrained, continuing with the same approach will only place greater pressure on renters. Retaining existing homes must therefore become as important as attracting new investment.
That will require government, local authorities, landlords and professional housing providers to work together. Guaranteed rent and other long-term management partnerships offer a practical way to do that by keeping landlords invested, maintaining standards and, most importantly, helping ensure that more households have access to a stable place to call home.
