Tenant demand across England continued to strengthen during the second quarter of 2026, with 29.7% of all rental listings already securing a tenant, according to new research from The Letting Partnership.
Demand rose by 2.3% over the quarter and now sits 0.3% higher than the same time last year, pointing to continued resilience in the rental market and rising volumes of landlord and tenant funds moving through letting agent client accounts.
The Letting Partnership's Rental Market Index tracks tenant demand across each county in England, measuring what proportion of total rental listings have already been marked as 'let agreed' to gauge how quickly available stock is being secured by tenants.
Tenant appetite has stayed robust despite ongoing affordability pressures and legislative changes under the Renters' Rights Act, with letting agents in many parts of the country continuing to process high volumes of deposits, rent in advance and ongoing rental payments through client accounts.
Highest rental demand
West Sussex remains home to the strongest tenant demand in England, with 49.8% of all rental listings already marked as let agreed. The top ten counties for tenant demand are:
- West Sussex, 49.8%
- Rutland, 48.4%
- Cumbria, 45.0%
- Gloucestershire, 44.7%
- Warwickshire, 44.3%
- Suffolk, 43.9%
- Cornwall, 43.3%
- Hertfordshire, 42.6%
- Isle of Wight, 42.3%
- Shropshire, 42.3%
Strongest quarterly increases
Rutland recorded the largest quarterly increase in tenant demand, rising by 9.0% during Q2. Worcestershire saw a significant uplift of 8.6%, and several other counties also posted strong quarterly gains:
- Norfolk, 7.6%
- Gloucestershire, 7.3%
- City of London, 7.2%
- Oxfordshire, 7.1%
- West Yorkshire, 6.9%
- Lincolnshire, 6.3%
- Warwickshire, 5.5%
- South Yorkshire, 5.5%
Strongest annual growth
Rutland again led the way on an annual basis, with tenant demand increasing by 18.6% compared with Q2 2025. Norfolk recorded substantial annual growth of 9.9%, while Warwickshire climbed by 8.2%. Cumbria posted annual growth of 6.6%, followed by the City of Bristol at 4.3%, Nottinghamshire at 3.9%, Shropshire at 3.4%, and Lincolnshire at 3.3%. Gloucestershire (2.6%) and North Yorkshire (2.5%) also recorded notable annual improvements.
The figures show tenant demand strengthening across much of England, with many counties recording sustained quarterly and annual growth. For letting agents, that continued activity means rising volumes of client money passing through their businesses, adding weight to the need for robust client accounting processes, effective financial controls and strong compliance standards.
"Tenant demand has continued to build through the second quarter, which is encouraging for the wider rental market but also reinforces the operational pressures many letting agents continue to face, especially in a post Renters' Rights Act market," said Chris Mason, chief operating officer of The Letting Partnership.
"Every successful tenancy involves client money moving through an agency, whether that's deposits, rent in advance, or ongoing rental payments," he added. "As demand increases, so too does the responsibility on agents to ensure those funds are managed accurately, securely, and in full compliance with regulatory requirements.
"The markets seeing the highest levels of tenant activity are often those where client money volumes are greatest, making strong accounting processes and financial oversight increasingly important. As transaction numbers rise, even small operational weaknesses can become much more significant if they are not identified and addressed.
"At the same time, the regulatory landscape continues to evolve, with agents expected to demonstrate increasingly robust compliance alongside delivering excellent service to landlords and tenants. The agencies that invest in resilient systems, effective controls, and independent oversight will be best positioned to manage that growing responsibility while continuing to build trust with their clients."
