Tenant demand climbs across England in Q1 as rental market pressure builds for letting agents

Across England as a whole, demand has climbed by 2.3% over the quarter, although it remains marginally down on an annual basis, dipping by -0.9%. Despite this slight annual easing, a substantial share of available rental stock continues to be secured at pace, with more deposits, rents in advance and landlord funds passing through agent client accounts as a result. 

This not only reinforces the ongoing imbalance between supply and tenant appetite, but also concentrates client money exposure in the busiest rental markets and increases the importance of strong operational and compliance processes. 

Highest rental demand

West Sussex is home to the strongest level of tenant demand in Q1, where 51.6% of all rental listings have already been let agreed. Suffolk also ranks highly at 47.0%, followed by Shropshire at 44.2%. 

Wiltshire and Somerset both record demand levels of 43.5%, with the Isle of Wight close behind at 42.9%. Cornwall also posts a strong 42.8%, while Cumbria (41.2%), Bedfordshire (41.0%) and Hertfordshire (40.6%) complete the top 10. 

Strongest quarterly increases

When it comes to quarterly movement, Rutland has seen the most significant uplift in demand, climbing by 16.3% in Q1. The Isle of Wight has also seen a notable increase of 12.4%, while Shropshire is up 11.3%. 

Suffolk has recorded a 10.0% increase, with Staffordshire (9.9%) and Cornwall (9.4%) also seeing strong quarterly growth. West Sussex has climbed by 8.0%, while Lancashire (7.5%), Dorset (7.0%) and Hertfordshire (6.6%) also feature among the strongest performers. 

Strongest annual growth

Looking at annual trends, Cumbria has seen the largest increase in demand, rising by 7.5% over the last year. Shropshire follows at 6.8%, with Warwickshire up 6.5%. 

North Yorkshire has seen a 2.8% increase, while Lancashire (2.5%), West Yorkshire (2.3%) and East Riding of Yorkshire (2.2%) also report notable gains. South Yorkshire (1.9%), Staffordshire (1.7%) and Northumberland (1.1%) complete the top 10 for annual growth. 

The continued strength of tenant demand across both quarterly and annual measures highlights the sustained pressure facing the rental sector. 

For letting agents, this level of market activity not only reinforces the importance of efficient operations, but also means that larger volumes of landlord and tenant money are sitting in, or moving through, client accounts. As a result, the busiest rental markets are often where the consequences of weak financial controls, poor client accounting or inadequate compliance processes are most significant. 

Chris Mason, COO of The Letting Partnership, commented: 

“Tenant demand remains consistently strong across much of the country and what this index highlights is just how quickly available rental stock continues to be absorbed in many areas.

Where rental demand is strongest, agents are not only dealing with a higher volume of transactions, they are also handling greater volumes of landlord and tenant money. Deposits, rents in advance and ongoing rental payments all move through client accounts more quickly in these markets, which increases the potential risk if processes are not robust. 

For letting agents, this creates a significant level of operational pressure. When properties are letting at pace and transaction volumes remain high, there is an increased need to ensure that processes are robust, consistent and able to keep up with the speed of the market. 

When agents are operating at pace, there can be a temptation to focus purely on speed and service. But the busiest markets are often where the consequences of weak client accounting or poor compliance are most significant. As transaction volumes rise, it becomes increasingly important that agents have the right controls, oversight and financial processes in place to protect both landlords and tenants. 

At the same time, with the Renters’ Rights Act already bringing significant legislative changes, landlords are increasingly relying on letting agents for guidance and support. That means agents not only need to operate efficiently, but also ensure they are maintaining high standards across compliance and client money handling. 

As the market continues to evolve, the ability to combine strong operational processes with clear, well-managed compliance will be key. Those agents who can do both effectively will be best placed to deliver for landlords and tenants, whilst navigating an increasingly demanding and regulated market.”

Data tables and sources

• Rental demand data based on rental listings sourced from Rightmove (25/03/2026)

• Demand percentage relates to the proportion of total rental market listings that have already had a let agreed.

• View full data tables and sources online here.