Rental Market Hotspots Drive National Growth
New analysis from FCC Paragon reveals modest national growth in rental demand across England in Q2 2025, up by 1.2% to 29.4%. However, this overall increase masks significant regional variation, with several counties experiencing substantial quarterly surges that are driving the market forward.
The research shows that rental demand across England strengthened in Q2, up 1.2% versus the first three months of the year, with 29.4% of all homes on the market having found a tenant.
However, it’s Leicestershire that leads the charge with a remarkable 7.8% quarterly increase in rental demand, followed by West Yorkshire (+7.0%) and South Yorkshire (+5.3%), highlighting the strong rental market momentum in these regions.
Other notable performers include Northumberland (+4.9%), Merseyside (+4.8%), and Cumbria (+4.7%), all seeing healthy growth that points to widening rental opportunities beyond the traditional urban centres.
Meanwhile, some of England’s most sought-after rental markets continue to see consistently high demand levels.
West Sussex tops the chart with a 50.7% rental demand rate, closely followed by Cornwall (45.7%), Herefordshire (44.9%), Suffolk (45.0%), and Wiltshire (44.4%).
These areas are favoured for their lifestyle appeal, combining natural beauty with affordable housing options, making them particularly popular among families and retirees alike.
Bekki Leaves, Managing Director of FCC Paragon, commented:
“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.
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.”
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