Blog 14 - Hard Times for Landlords: Why Finding Good Renters Has Become So Challenging

“The measure of intelligence is the ability to change.”

— Albert Einstein

Hard Times for Landlords:
Why Finding Good Renters Has Become So Challenging

The UK property market is undergoing one of the most difficult periods in years — and landlords and property managers are feeling it on multiple fronts. From rising homelessness to changing behaviours among renters, the market dynamics are shifting rapidly, and understanding this helps explain why the rental landscape feels tougher than ever.

📈 A Growing Homelessness Crisis — More People Need Homes

Recent data shows homelessness in England is rising sharply:

At least 382,000 people in England are homeless, up about 8% year-on-year — that’s roughly 1 in every 153 people without a permanent home.

Record numbers of households are living in temporary accommodation — 132,410 as of mid-2025, with large increases in families and children.

While not all of these represent people in the rental market actively searching for housing, this illustrates the sheer scale of unmet accommodation need. Many people are desperate for stable housing options and compete for available properties.

In our office we recorded 80% of all enquiries were from people with housing problems, no work and DSS claimants. This is surprisingly high comparing to previous months and years.

🏘️ Rental Demand Remains High — With Mixed Trends

Despite some reports of slowing overall rental demand in certain areas recently, many segments of renters are still actively seeking homes.

What’s driving this?

• Economic pressures like inflation, job market shifts, and benefit limits push people toward rental solutions instead of homeownership.

• Homelessness and housing insecurity mean many tenants are urgently searching for accommodation.

• In some instances, tenants are looking for housing without stable employment or long-term income — which adds complexity to tenancy screening.

Last month we requested guarantors' support on most applications due to insecure position of applicants. Those, who could not provide support from their guarantor couldn't submit the application.

🤝 The Human Side of It: Not All Inquiries Are Equal

We see this complexity reflected in real inquiries:

Recently, we had a tenant inquiry from someone seeking housing who, when asked whether they planned to work in the nearest future, said they had no intention of doing so “for now.”

This kind of real-world situation highlights how the rental market now often includes applicants who need housing but are not in a position to rent accommodation even at a lower tier (e.g. rooms).

📉 Why It’s Tougher for Landlords and Property Managers

Here are the main structural pressures:

✅ Higher Baseline Tenant Need

More people are forced into the private rental sector due to homelessness, lack of social housing, or rising living costs. This means increased competition, but also a wider variety of tenant situations.

✅ Rising Running Costs

Bills, compliance requirements, maintenance expectations, and legislative changes (like renters’ rights updates) have increased the burden on landlords and agents alike.

✅ Risk of Problem Tenancies

Higher demand doesn’t always translate to better applicants. Many applicants may have:

• Irregular work or zero-hour contracts

• Gaps in employment

• Low or variable incomes

• Past housing challenges

These situations require better screening, more support, and risk management — all adding complexity to property management.

💔 Market Shifts Are Pushing Some Managers Out

Because of these pressures, we’re seeing:

• Smaller managers exiting the business

• Some landlords choosing to sell or reduce exposure

• A consolidation toward larger operators who can absorb the administrative and compliance load

Yet, we’re still here — and committed to doing things right. Market challenges are not turning us around and therefore our ambition is to grow our business substantially this year.

We see it as not just a business, but a responsibility. Professional property management isn’t about collecting rent — it’s about creating stability for tenants and predictable outcomes for landlords.

🔑 What This Means for Smart Landlords

As regulation tightens and tenant awareness grows, we expect:

• Greater separation between professional and accidental landlords

• Increased focus on service, communication, and standards

• Stronger performance from landlords who adapt early

• Upcoming Renter's Right Bill will filter out those who cut corners from those who really want to make a difference in the UK market

The opportunity is still very much there — but it rewards intention, not complacency.

So what changes we're looking to make? Well, our goal is to dominate our local market with professionalism and satisfaction, whilst ensuring all standards and regulations are met. Another words, we're going to work with more landlords and tenants to show them what a good management really is 🙂