Tenant demand across England strengthened during the third quarter of 2026, with 31.1% of all rental listings already securing a tenant. 

Demand has increased by 1.4% over the quarter, although it remains broadly in line with the same period last year, sitting just -0.1% lower. 

The figures suggest that rental market activity remains resilient despite ongoing affordability pressures and continued changes to the regulatory landscape.

LegalforLandlords’ Rental Demand Index analyses tenant demand across each county in England, looking at what proportion of total rental market listings have already been marked as ‘let agreed’, providing a gauge of how quickly available stock is being secured by tenants.

Across England as a whole, demand now stands at 31.1%, having climbed by 1.4% since Q2 2026 and sitting just -0.1% below the same period last year.

The quarterly increase suggests that tenant appetite strengthened over the summer, with more than three in ten rental listings now marked as let agreed. For landlords and letting agents, continued activity means sustained volumes of deposits, rents in advance, and ongoing rental payments moving through the rental market, reinforcing the importance of effective financial management and robust processes.

Highest rental demand

The City of London and West Sussex recorded the strongest level of tenant demand in England during Q3, with 43.5% of all rental listings in each county already marked as let agreed.

Herefordshire ranks next at 41.8%, followed by Hertfordshire (41.3%), Warwickshire (40.1%), Cumbria (40.1%), Shropshire (40%), Wiltshire (39.9%), Norfolk (39.1%) and Hampshire (39%).

Demand was at its lowest in Tyne & Wear (18.3%), Nottinghamshire (21.1%), and the East Riding of Yorkshire (24%).

The figures highlight the continued strength of demand across a broad range of rental markets, with high levels of tenant activity being recorded in both London and regional markets. But across the nation, there remains great variation in tenant appetite.

Strongest quarterly increases

The City of London recorded the largest quarterly increase in tenant demand, rising by 13.5% during Q3. The City of Bristol also saw a significant uplift of 5.4%, followed by Greater Manchester (4.5%), Merseyside (4.3%), and Greater London (3.9%).

The quarterly figures demonstrate that while some established high-demand markets saw demand moderate during the summer, a number of major urban and metropolitan markets experienced notable increases in tenant activity.

The biggest quarterly drops were recorded in Rutland (-10.2%), Gloucestershire (-7.8%), and the Isle of Wight (-7.8%).

Strongest annual growth

On an annual basis, Herefordshire led the way, with tenant demand increasing by 8.9% compared with Q3 2025. The City of Bristol also recorded substantial annual growth of 6.7%, while North Yorkshire climbed by 5.9%.

The City of London posted annual growth of 5.3%, followed by Staffordshire at 5.1%, while Shropshire and Devon both increased by 3.3%.

While overall demand across England remains broadly unchanged year-on-year, the regional picture shows considerable variation, with several areas continuing to record meaningful annual increases in tenant activity.

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Sim Sekhon, Group CEO of LegalforLandlords, comments: “For letting agents, the changing market also creates an opportunity to add greater value through better local insight and financial management. 

“As demand becomes more uneven across different markets, agents that can help landlords understand those shifts while managing rents, deposits and compliance effectively will be well placed to support successful long-term tenancies.”