Tenant demand for rental homes in England climbed by 1.7% between Q2 and Q3 2024, while demand since the start of the year has increased by 3.3%.
A new analysis has looked at rental demand across each county in England based on the number of available rental properties that have already seen a let agreed as a proportion of total rental stock available.
Rental demand across England sat at 35.1% during the third quarter of this year, meaning that more than a third of all rental properties listed on the market had found a tenant. This marks a quarterly increase of 1.7% as well as a 3.3% increase since the start of 2024.
West Midlands County recorded the largest quarterly increase of all English counties, with rental demand climbing by 5.6% between Q2 and Q3 2024. The second-largest tenant demand increase was recorded in Leicestershire (5.2%), with West Yorkshire (4.5%), Greater London (4.1%), and Devon (4%) completing the top five for quarterly growth.
England’s hottest rental market right now is West Sussex where tenant demand of 55% is highest across all counties for Q3 2024. In Wiltshire, 50.1% of all rental properties have secured tenants, while demand is also strong in Hertfordshire (48.4%), Somerset (47.6%), and Cambridgeshire (47.4%)
However, rental demand in some counties is lagging severely behind. In Nottinghamshire, just 20.8% of all rental properties have been successfully let, while demand is also particularly low in East Riding of Yorkshire (25.3%) and the City of London (26.2%).
A spokesperson for Zero Deposit – which commissioned the analysis – says: “The most sought-after markets remain very much in the southern counties of England. In fact, the 12 counties with the strongest demand are all located in the south, with Nottingham’s entry at number 13 being the first showing for any county in the midlands or north of England.
“There are two things on the horizon that are sure to have a big impact on tenant demand.
“The first is the Renters Rights Bill which is designed to protect tenants and give them a more secure rental experience. This added tenant confidence could bring more people into the rental market. However, there is also the fact that the new bill makes it harder for landlords to remove tenants. This may act to reduce supply as more tenants stay put for longer periods of time, reducing market churn.
“Then we have the upcoming changes to Capital Gains Tax that are widely expected to be announced during the government’s Autumn Budget on October 30.”