"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"
- Sam Humphreys - Dwelly
Tenant demand across the UK rental sector continued to climb in the third quarter of this year, according to the latest analysis from Dwelly, a lettings acquisition and success planning specialist. West Sussex recorded the highest demand, while Rutland experienced the largest quarterly increase.
Dwelly’s Rental Demand Index examines tenant demand by county, tracking the proportion of rental listings already marked as ‘let agreed’.
The index shows that, across England, just under a third (31%) of rental properties had been let in Q3, a 1.7% increase on the previous quarter.
West Sussex led the country in tenant demand, with 47.2% of rental listings already let. Other counties with high demand included:
Somerset: 41.8%
Wiltshire: 43.0%
Suffolk: 41.4%
Hampshire: 40.5%
Cumbria: 41.3%
By contrast, Nottinghamshire had the lowest proportion of rental properties let, with only 18.4% snapped up by tenants.
Some areas saw particularly sharp quarterly increases in tenant demand:
Rutland: +9.2%
City of London: +8.6%
Northumberland: +6.5%
Norfolk: +4.5%
Greater London: +4.4%
On the other hand, several counties experienced notable declines:
Herefordshire: -12%
Isle of Wight: -9.8%
Cornwall: -7.5%
Gloucestershire: -5.6%
North Yorkshire: -5.3%
Sam Humphreys, head of m&a at Dwelly, commented, “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."
“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.”
