Tenant demand across England’s rental market continued to climb in the third quarter of 2025, according to new analysis by lettings advisory firm Dwelly.
Dwelly’s latest Rental Demand Index shows that almost a third (31%) of all rental properties were marked as ‘let agreed’ during Q3, up 1.7% on the previous quarter.
West Sussex recorded the strongest tenant demand, with nearly half (47.2%) of all listings already let, followed by Wiltshire (43%), Somerset (41.8%), Suffolk (41.4%), and Hampshire (40.5%).
In contrast, Nottinghamshire saw the weakest market conditions, with just 18.4% of available rental homes finding tenants. However, several areas reported sharp quarterly increases, including Rutland (+9.2%), the City of London (+8.6%) and Northumberland (+6.5%).
STEEPEST DECLINE
By comparison, Herefordshire experienced the steepest decline in demand, down 12% on the quarter, followed by the Isle of Wight (-9.8%) and Cornwall (-7.5%).
Sam Humphreys, Head of M&A at Dwelly, says: “Whilst uncertainty remains due to the upcoming Renters’ Rights Bill, it’s clear there is no let-up in rental demand and across much of the country, a very high proportion of rental stock continues to let quickly, underlining the strength of tenant appetite.
“For landlords, this demonstrates that the fundamentals of the market remain strong.
“Even with legislative changes on the horizon, there is no shortage of tenants needing homes, which means rental returns remain resilient. The real challenge is ensuring that properties are managed in a way that keeps pace with both tenant demand and regulatory requirements.
VITAL ROLE
And he adds: “This is where letting agents have a vital role to play. By adopting the right processes and technology, they can help landlords reduce the administrative burden, stay compliant and, most importantly, improve the overall tenant experience.
“At Dwelly, we’ve been focused on supporting our partner agents with the tools and operational frameworks that allow them to work more efficiently.
“In turn, this ensures that the landlords they serve can continue to operate profitably and sustainably whilst remaining on top of high demand from tenants, even as the sector undergoes its biggest period of change in decades.”
