Tenant demand in the private rented sector softened in the final quarter of 2025 with only a small number of English counties bucking the usual year-end slowdown, according to new analysis from property platform Dwelly.
The company examined rental listings across England and measured the share of homes that had already secured a tenant, comparing the figures with both the previous quarter and the same period a year earlier.
The results indicate that the traditional pre-Christmas cooling in activity was compounded by wider uncertainty in the sector.
Across Q4 2025, around 25% of rental properties listed on the market had been let, a decline of 6.1% compared with Q3. Demand was also 2.7% lower than in the same quarter of 2024, signalling that the slowdown was sharper than usual for the time of year.
RENTERS’ RIGHTS ACT
Analysts suggest that, alongside seasonal factors, some tenants delayed moving decisions while awaiting further clarity on regulatory changes linked to the Renters’ Rights Act.
Only six counties recorded an increase in demand over the quarter. Herefordshire saw the strongest rise at 8.7%, followed by North Yorkshire (up 7.1%), Warwickshire (up 4.7%), Somerset (up 1.8%), Devon (up 0.7%) and Tyne and Wear (up 0.7%). On an annual basis, Herefordshire again led the market with a 4.7% rise in demand, with eight other counties also showing year-on-year improvement.
SUBDUED END OF YEAR
Overall, the figures point to a more subdued end to the year for landlords after a prolonged period of intense pressure on rental supply and prices.
While demand remains historically high in many areas, the data suggests some tenants are delaying moves as they assess the impact of upcoming reforms, mortgage rate trends and broader economic conditions.
GREATER CLARITY
Sam Humphreys (main picture, inset), Head of M&A at Dwelly, says:“Rental demand softened in Q4 and this is a seasonal trend we’ve come to expect at a time of year when attention shifts to the Christmas period and spending time with family and friends.
“As a result, plans to secure a rental home are often pushed into the new year, and we expect to see activity pick up again over the coming months as life returns to normality.
“Of course, the Renters’ Rights Act has also had an influence on the market and while there is now greater clarity following its approval, we’re still waiting for the finer details.
“So it’s understandable that some tenants are still choosing to sit tight until this information is provided, which helps explain why demand was lower than usual during the final quarter of last year.”
