Tenant demand across England strengthened in the first quarter of 2026 with new data pointing to sustained pressure on letting agents as stock continues to be absorbed at pace.
Research from The Letting Partnership shows that 27.4% of rental listings were already marked as let agreed in Q1, underlining the speed at which available homes are being secured.
The firm’s Rental Market Index, which tracks the proportion of homes reaching let agreed status, found demand increased by 2.3% over the quarter, although it remains marginally down year-on-year by 0.9%.
Despite this slight annual dip, activity levels remain elevated, with a significant volume of deposits, rents in advance and ongoing payments flowing through letting agent client accounts. The data highlights how the busiest rental markets are also those where financial and compliance exposure is most concentrated.
AROUND THE REGIONS
West Sussex recorded the strongest demand, with 51.6% of listings already let agreed. Suffolk (47.0%) and Shropshire (44.2%) also ranked highly, followed by Wiltshire and Somerset (both 43.5%). Cornwall, Cumbria, Bedfordshire and Hertfordshire all posted demand levels above 40%.
On a quarterly basis, Rutland saw the sharpest increase in demand, rising 16.3%, while the Isle of Wight (+12.4%) and Shropshire (+11.3%) also recorded notable uplifts.
Annually, Cumbria led the way with a 7.5% increase, followed by Shropshire (6.8%) and Warwickshire (6.5%), pointing to sustained regional pressure despite wider market fluctuations.
SUPPLY AND DEMAND IMBALANCE
The findings reinforce the ongoing imbalance between supply and tenant demand, particularly in high-performing markets where stock turnover is fastest.
Chris Mason (main picture), COO of The Letting Partnership, says: “Tenant demand remains consistently strong across much of the country and what this index highlights is just how quickly available rental stock continues to be absorbed in many areas.
“Where rental demand is strongest, agents are not only dealing with a higher volume of transactions, they are also handling greater volumes of landlord and tenant money… which increases the potential risk if processes are not robust.
“As transaction volumes rise, it becomes increasingly important that agents have the right controls, oversight and financial processes in place to protect both landlords and tenants.”
