Regional hotspots fuel England’s PRS demand

Regional hotspots are fuelling a 1.2% rise in England’s rental demand in the second quarter, reaching 29.4%, research reveals.

The study by FCC Paragon highlights a striking regional difference in growth in some counties.

Leicestershire spearheads this trend with an impressive 7.8% quarterly jump, followed closely by West Yorkshire at 7% and South Yorkshire at 5.3%.

These areas are emerging as key drivers of the rental sector’s momentum.

Modest rent demand growth

The firm’s managing director, Bekki Leaves, said: “While rental demand during the second quarter of the year has been somewhat modest when considering the overall national picture, it’s clear that regional hotspots are playing a pivotal role in supporting the market.

“Counties such as Leicestershire and West Yorkshire are showing impressive growth rates, reflecting strong local economies and rental needs.

“Meanwhile, established high-demand areas like West Sussex and Cornwall maintain their appeal, offering a mix of lifestyle benefits and housing availability.”

She added: “This strong regional rental demand growth comes despite the fact that the summer months usually see a seasonal lull in tenant activity as many renters have already made their moves for the year.

“As we head into the latter half of 2025, we anticipate the current pace of the rental market to quicken, especially driven by those planning for the new university year and longer-term relocations.”

Regions showing strong growth

Other regions in the FCC Paragon study showing robust growth include Northumberland (4.9%), Merseyside (4.8%) and Cumbria (4.7%).

This, the firm says, indicates expanding rental opportunities for landlords beyond major cities.

Meanwhile, high-demand areas like West Sussex, with a 50.7% rental demand rate, Cornwall (45.7%), Herefordshire (44.9%), Suffolk (45.0%) and Wiltshire (44.4%).

Those areas remain popular for their scenic charm and affordable housing, attracting families and retirees, the study shows.