"In many regional markets including the North East, Midlands, Wales, North West, Yorkshire, and the East of England, demand for larger two and three-bedroom homes is outpacing that seen for smaller properties"
- Marc von Grundherr - Benham and Reeves
The latest research from Benham and Reeves has found that around a quarter of all rental homes currently listed across Britain have already secured a tenant, highlighting continued underlying demand despite ongoing regulatory uncertainty.
Benham and Reeves analysed current rental market listings to highlight rental demand and the size of properties most sought after by renters. The firm also commissioned a survey of UK renters to identify which property features matter most in the current market.
The research shows that 25.1% of homes across Great Britain have already had a let agreed.
Demand is strongest in the East of England, where 34.8% of available rental properties have been taken, followed by the South East at 33.1% and the South West at 31.9%. Scotland currently records the lowest level of competition, with just 9% of rental homes let.
The research also highlights clear trends when it comes to property size. Two-bedroom homes remain the most in-demand property type nationwide, accounting for the highest proportion of agreed lets, followed by one-bedroom properties.
However, in many regional markets including the North East, Midlands, Wales, North West, Yorkshire, and the East of England, demand for larger two and three-bedroom homes is outpacing that for smaller properties and studios. This reflects the growing number of renters remaining in the sector for longer and prioritising additional space to support changing lifestyles, home working, and family life.
Traditional priorities continue to dominate when it comes to rental features. Affordable monthly rent was cited as the most important factor by 26% of respondents.
Location and transport links and property size and layout both ranked second at 10%, followed closely by pet-friendly policies at 9%.
Other key considerations included responsive landlords or managing agents, outdoor space, and quiet surroundings. Features such as high-speed broadband, modern appliances, and flexible tenancy terms ranked lower.
"Our analysis shows that when it comes to current rental demand, around a quarter of all rental homes listed across Britain have already found a tenant," said Marc von Grundherr, director of Benham and Reeves.
"This is largely in line with the levels of activity we would typically expect to see at this time of year and suggests that, despite the ongoing uncertainty surrounding the implementation of the Renters' Rights Act, demand remains resilient."
"Regionally, demand remains strongest across the East of England, South East, and South West and when it comes to property type, two-bedroom homes continue to attract the greatest level of interest nationwide," he added.
"However, in many regional markets including the North East, Midlands, Wales, North West, Yorkshire, and the East of England, demand for larger two and three-bedroom homes is outpacing that seen for smaller properties. This points to a clear shift in renter behaviour, with more people remaining in the sector for longer and prioritising space to accommodate evolving lifestyles, home working, and family life."
"Our latest insight also shows that traditional priorities still dominate decision-making, with affordability, location, and property size ranking well ahead of more lifestyle-led features," von Grundherr noted. "That said, demand for pet-friendly homes remains strong, and the forthcoming removal of blanket pet bans under the Renters' Rights Act is a positive step that should help improve choice for tenants."
