Rental demand is holding firm in 2026 with a quarter of homes across Britain already let according to new research from Benham and Reeves.
Analysis of current listings shows 25.1% of rental properties have already secured a tenant, signalling steady underlying demand despite continued regulatory uncertainty.
The East of England is the most competitive region, with 34.8% of available homes let, followed by the South East (33.1%) and South West (31.9%). Scotland sits at the other end of the scale, where just 9% of rental homes have been taken.
Two-bedroom properties remain the most in-demand nationwide, followed by one-bedroom homes. In regions including the North East, Midlands, Wales, North West, Yorkshire and the East of England, demand for larger two and three-bedroom homes is outpacing that for smaller properties and studios.
AFFORDABILITY TOP PRIORITY
Separate survey data from renters shows affordability remains the top priority, cited by 26% of respondents.
Location and transport links, and property size and layout, both ranked second at 10%, with pet-friendly policies close behind at 9%. Features such as high-speed broadband, modern appliances and flexible tenancies were less influential.
Marc von Grundherr (main picture), Director of Benham and Reeves, says: “Our analysis shows that when it comes to current rental demand, around a quarter of all rental homes listed across Britain have already found a tenant.
“This is largely in line with the levels of activity we would typically expect to see at this time of year and suggests that, despite the ongoing uncertainty surrounding the implementation of the Renters’ Rights Act, demand remains resilient.
“Regionally, demand remains strongest across the East of England, South East, and South West and when it comes to property type, two-bedroom homes continue to attract the greatest level of interest nationwide.”
BEHAVIOURAL SHIFT
But he adds: “However, in many regional markets including the North East, Midlands, Wales, North West, Yorkshire, and the East of England, demand for larger two and three-bedroom homes is outpacing that seen for smaller properties.
“This points to a clear shift in renter behaviour, with more people remaining in the sector for longer and prioritising space to accommodate evolving lifestyles, home working, and family life.
“Our latest insight also shows that traditional priorities still dominate decision-making, with affordability, location, and property size ranking well ahead of more lifestyle-led features.
“That said, demand for pet-friendly homes remains strong, and the forthcoming removal of blanket pet bans under the Renters’ Rights Act is a positive step that should help improve choice for tenants.”
