The latest research by Zero Deposit reveals that tenant demand for rental homes in England fell by -7.3% between Q3 and Q4 2024, while demand was also down by -2.6% annually.
The latest index by Zero Deposit shows that rental demand across England sat at 27.7% during the fourth quarter of 2024. This marks a quarterly decline of -7.3%, and a -2.6% drop since the start of 2024.
While the national picture shows falling demand, four English counties did see rental demand increase in the final quarter of last year.
Somerset saw the largest quarterly increase of +3.2%, followed by Cornwall (+2.8%), North Yorkshire (+1.4%), and Warwickshire (+1.1%).
FALLING DEMAND
While the City of London saw no change, every other county reported falling rental demand in Q4.
The largest drop was seen in Leicestershire where demand fell by -15%. This is followed by the Isle of Wight (-12.1%), West Midlands County (-11.9%), Devon (-11.6%), and Buckinghamshire (-11.5%).
England’s hottest rental market in Q4 was Somerset where just over half of all rental homes (50.8%) had been snapped up by tenants.
In West Sussex, 47.3% of all rental listings had already secured a tenant, while demand also sat at or above 40% in Suffolk (43%), Bedfordshire (42.1%), Wiltshire (41.7%), Cornwall (40.1%), and Warwickshire (40%).
In some counties, however, rental demand is severely lagging behind, not least in West Yorkshire (16.6%), Nottinghamshire (17%), and Leicestershire (17.5%).
CRISIS EASING
Sam Reynolds, Chief Executive of Zero Deposit, says: “A reduction in rental demand during the final quarter of last year may suggest that the current rental crisis is easing but this is far from the reality.
“The market continues to suffer from a severe imbalance when it comes to the demand seen for rental properties versus the supply of stock available across the market.
“Despite this, the rental market isn’t immune to the seasonal trends that impact the rest of the property sector and so the decline in demand seen during Q4 can almost certainly be attributed to these seasonal factors.”
PLANS ON HOLD
He adds: “In the run up to Christmas many tenants will have already made their move and those who haven’t are more likely to put their plans on hold until the dust has settled on the festive period.
“Now that a new year is underway, we expect demand will once again start to climb and as tenants look to make their move.”
