Seasonal slowdown sees rental demand soften in Q4
The latest research from Dwelly has revealed that just a handful of areas saw tenant demand for rental homes climb during Q4, as the wider market succumbed to its usual seasonal slowdown ahead of the Christmas break.
Dwelly analysed rental market stock across England, looking at the proportion of rental properties listed on the market that had already secured a tenant and how this compared to the previous quarter.
The research shows that during Q4 2025, 25% of all rental homes listed on the market had secured a tenant. This marked a 6.1% reduction versus the previous quarter, as the market began to wind down ahead of the festive period and many renters opted to put off their plans to move until the new year.
However, the seasonal slowdown was more pronounced than usual, with rental demand also sitting 2.7% lower on an annual basis. This suggests that, in addition to the usual seasonal trend, some renters may have chosen to sit tight while awaiting further clarity around incoming changes as a result of the Renters’ Rights Act.
Regionally, just six counties across England recorded an increase in rental demand during Q4. Herefordshire saw the largest quarterly uplift, with demand rising by 8.7%, followed by North Yorkshire (+7.1%), Warwickshire (+4.7%), Somerset (+1.8%), Devon (+0.7%) and Tyne and Wear (+0.7%).
On an annual basis, Herefordshire also led the market, recording the largest year-on-year increase in rental demand at 4.7%, with a further eight counties across England also seeing demand improve compared to Q4 2024.
Sam Humphreys, Head of M&A at Dwelly, commented:
“Rental demand softened in Q4 and this is a seasonal trend we’ve come to expect at a time of year when attention shifts to the Christmas period and spending time with family and friends. As a result, plans to secure a rental home are often pushed into the new year, and we expect to see activity pick up again over the coming months as life returns to normality.
Of course, the Renters’ Rights Act has also had an influence on the market and while there is now greater clarity following its approval, we’re still waiting for the finer details.
So it’s understandable that some tenants are still choosing to sit tight until this information is provided, which helps explain why demand was lower than usual during the final quarter of last year.”
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