Rental demand grows as tenants prepare for busy moving season

Rental activity in England is experiencing a revival with a rise in tenant interest for properties in the first three months of 2025, research reveals.

The findings from Zero Deposit point to West Sussex as the emerging frontrunner, claiming the title of England’s most sought-after rental location.

The firm evaluated rental appetite across all English counties by examining the proportion of available properties that swiftly secured tenants relative to the overall rental supply.

Its latest index reveals that 28.2% of rental homes in England found occupants during the first quarter of 2025.

That’s a slight quarterly uptick of 0.5%, though it remains 3.6% lower than the same period in 2024.

Severe supply imbalance

The firm’s chief executive, Sam Reynolds, said: “When England’s rental demand fell by more than 7% in the last quarter of 2024, some commentators suggested it showed signs that the nation’s rent crisis was rebalancing, but we were quick to point out this was far from true, and now the numbers from Q1 2025 show we were correct in our assessment.

“The market continues to suffer from a severe imbalance between supply and demand with multiple tenants wrestling over every single property that becomes available.

“Now that we’re heading into spring and summer, typically the market’s busiest periods, demand pressures are only going to get worse as more and more tenants look to make their next move.”

He added: “We are seeing the results of stubbornly high house prices forcing more people to postpone their first purchases and therefore rent for longer than ever before, and also a constant lack of new supply to the rental market, particularly outside of our major cities.”

He adds that the introduction of the Renters’ Rights Bill may lead to growing numbers of landlords choosing to exit the sector.

Most counties saw growth

While the national overview suggests a slight improvement, 31 counties exceeded the average growth in tenant interest during early 2025.

The Isle of Wight recorded the most significant jump, with demand leaping by 17.2% over the quarter.

Other areas showing robust increases include Rutland (14.1%), Herefordshire (8.4%), Wiltshire (7.3%) and Gloucestershire (7%).

Strong gains were also noted in Suffolk (6.2%), Lincolnshire (5.1%), Worcestershire (4.8%) and Devon (4.8%), each surpassing a 4.5% rise.

West Sussex leads the way

However, not all regions shared this positive trend in rising tenant demand with several counties witnessing declines.

Warwickshire suffered the steepest fall at 7.7%, followed by Tyne and Wear (7.3%), Merseyside (5.6%) and South Yorkshire (5.6%).

In contrast, West Sussex led as England’s rental demand champion, with 51% of its listings quickly let.

Close behind were Suffolk (49.1%), Wiltshire (49%), the Isle of Wight (48.5%), Rutland (46%) and Somerset (45.9%).

Demand hit its lowest points in West Yorkshire (14.1%), Nottinghamshire (15.4%) and South Yorkshire (17.3%).