Rental demand across England rose modestly in the second quarter of 2025 but strong regional surges are underpinning wider market resilience, new figures from FCC Paragon reveal.
The proportion of homes finding tenants rose by 1.2% nationally to 29.4% in Q2.
However, this overall increase masks significant regional variation, with several counties registering sharp quarterly spikes in demand.
Leicestershire led the way with a 7.8% quarterly rise in rental demand, followed by West Yorkshire at 7.0% and South Yorkshire at 5.3%. Northumberland (+4.9%), Merseyside (+4.8%), and Cumbria (+4.7%) also posted robust growth, signalling expanding rental activity beyond the traditional urban strongholds.
SHIFTING PREFERENCES
Bekki Leaves, Managing Director of FCC Paragon, says: “These regions are demonstrating strong momentum, reflecting localised economic growth and shifting tenant preferences.”
Alongside the strongest quarterly improvers, a number of counties continue to record consistently high demand.
West Sussex topped the list, with 50.7% of available rental properties let in Q2. Cornwall (45.7%), Suffolk (45.0%), Herefordshire (44.9%) and Wiltshire (44.4%) also remained highly sought after.
Leaves adds: “These established hotspots are benefitting from a blend of lifestyle appeal and relative affordability.
“They remain popular among families, retirees and remote professionals seeking a better quality of life outside the major cities.”
SEASONAL SLOWDOWN
Leaves says that the robust regional performance comes despite a typical seasonal slowdown over the summer months as many tenants settle before the start of the academic year.
And she adds: “While rental demand during the second quarter of the year has been somewhat modest when considering the overall national picture, it’s clear that regional hotspots are playing a pivotal role in supporting the market.
“Counties such as Leicestershire and West Yorkshire are showing impressive growth rates.”
“Counties such as Leicestershire and West Yorkshire are showing impressive growth rates, reflecting strong local economies and rental needs. Meanwhile, established high-demand areas like West Sussex and Cornwall maintain their appeal, offering a mix of lifestyle benefits and housing availability.
“As we head into the latter half of 2025, we anticipate the current pace of the rental market to quicken, especially driven by those planning for the new university year and longer-term relocations.”
