Rental demand holds firm as tenants prioritise space

Rental demand has held firm at the start of 2026, with research suggesting tenants are still competing for homes.

An analysis by Benham and Reeves shows that 25.1% of rental properties currently listed across Great Britain have already secured tenants.

The East of England leads with 34.8% of homes having agreed lets, the South East follows at 33.1%, with the South West close behind on 31.9%.

However, in Scotland just 9% of listings have been taken, which points to weaker competitive pressure.

Tenant demand is strong

Marc von Grundherr, a director of the firm, said: “When it comes to current rental demand, around a quarter of all rental homes listed across Britain have already found a tenant.

“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.”

The data also shows that property size is also shaping tenant behaviour with two-bedroom homes commanding the greatest interest.

One-bedroom properties are next and continue appealing to singles and couples with affordability constraints.

In the North East, Midlands, Wales, North West, Yorkshire and the East of England, demand for larger homes is becoming more popular.

Two and three-bedroom houses and flats are outperforming smaller stock and studios, reflecting how renters are adapting their expectations.

Tenants are staying longer

Benham and Reeves also say that more households are staying in rented accommodation for longer, often balancing work and family life under one roof.

Extra rooms are being repurposed for offices, childcare or shared living, pushing space higher up the tenants’ wish list.

A separate survey about what matters most when tenants are choosing where to live found that affordability tops the chart with 26% of respondents.

Transport connections and location rank jointly second at 10%, matched by property size and internal layout and pet-friendly policies follow at 9%.

Renters also said they wanted to see responsive landlords or agents, access to outdoor areas and quieter neighbourhoods.

However, lifestyle extras such as high-speed broadband, newer appliances and flexible tenancy agreements were seen as less decisive.