Lettings market
Letting agency expert says UK rental market is “rebalancing” after record migration surge
New ONS figures have confirmed what many letting agents have been quietly sensing: demand has softened, volumes are down, and the market is moving differently.
New figures from the Office for National Statistics have confirmed what many letting agents have been quietly sensing for the last year or so: something has changed.
The immense tenancy demand that shaped 2022 and 2023 has softened, volumes are down, and properties are not moving within hours.
The bidding wars have largely stopped, and some agents are worried. But they should not be, according to Sally Lawson at Agent Rainmaker. Once agents understand what actually drove that frenzied period, what is happening right now starts to make a lot more sense.
The numbers behind the noise
171,000
UK net migration for the year ending December 2025, down from a peak closer to 944,000 in 2023.
“The ONS data tells a really clear story. UK net migration has fallen to 171,000 for the year ending December 2025. At its peak in 2023, that figure was closer to 944,000. That is not a small correction, it is a seismic shift and the private rented sector was always going to feel it first.”
Sally Lawson, Agent Rainmaker
Much of that surge came from legal migration routes for skilled workers, healthcare staff, international students, graduate visa holders and family dependents. Many entered the private rental market on arrival because they needed homes quickly and could not buy.
“That wave is now receding. And it is not just that fewer people are arriving either. More people are leaving, with a large proportion being people who originally came to study or work on time-limited visas. Because these groups are disproportionately renters, when they leave, it is landlords and agents who experience the full impact.”
The market was not normal, it just felt like it
“Many agents have mistaken the post-Covid migration surge for a permanent ‘new normal’, when in reality it was a period driven by unique circumstances.”
“I have been in this industry long enough to know that changing markets can make you forget what normal actually looks like. During those peak years, I spoke to agents across the UK who were listing properties and getting thirty, forty, sometimes sixty or more enquiries before the end of the day.”
“Rents were rising fast, stock was scarce, and tenants were offering over the asking price just to secure somewhere.”
“It was intense, and probably one of the most overheated periods the private rented sector has ever seen. But it was never sustainable and it was never meant to be the new normal.”
“The mistake I am seeing a lot is that agents are now measuring today’s market against that exceptional peak, rather than against longer-term averages. Compared to 2023, things will of course feel quiet, but compared to 2018 or 2019, demand is still strong.”
It is not a crash, it is a rebalance
“The rental market has nowhere near collapsed. The UK still has a chronic housing shortage. Landlords are leaving the sector due to tax changes, compliance costs, and of course the Renters’ Rights Act.”
“New supply is not appearing at the pace needed to close that gap, so there are still challenges to tackle head on, like finding new ways to service landlords so they do not feel like the only option they have is to sell up.”
“What we are seeing now is a rebalancing. A return to a market where agents actually have to work for their listings, where pricing strategy matters again, and where communication with landlords is what separates agencies that thrive from those that simply survive.”
In some ways, Sally says, this is healthy. The “easy mode” years created bad habits, when properties filled themselves and there was less pressure to sharpen processes, develop the team or invest in landlord relationships. Now, those things matter again.
What this means for agencies now
Understanding migration trends is an essential part of running a letting agency. They directly affect enquiry volumes, void periods, rent levels and portfolio stability.
“The agencies that will come out ahead in this new phase are those who understand their landlord avatars and market to them effectively across the board. They will sharpen their pricing strategy for a market where tenants have slightly more choice, and build operational systems that make them indispensable, not just convenient.”
“Use this period to win over new landlords who are questioning whether their current agent is still delivering, or whether they should sell their stock altogether.”
“There are still many services that landlords would be willing to invest in if they were on offer, especially when it comes to compliance. And who better to deliver these solutions than agents who know the market and legislation inside out?”
Find out more about Agent Rainmaker
Agent Rainmaker helps letting agents grow stronger, more profitable businesses through training, systems and practical support.
Visit agentrainmaker.co.uk.
