Tenant demand continues to strengthen in Q2
The latest research by The Letting Partnership has found that tenant demand across England continued to strengthen during the second quarter of 2026, with 29.7% of all rental listings already securing a tenant. Demand has increased by 2.3% over the quarter and now sits 0.3% higher than the same time last year, demonstrating the continued resilience of the rental market and increasing the volume of landlord and tenant funds flowing through letting agent client accounts.
The Letting Partnership’s Rental Market Index analyses tenant demand across each county in England, looking at what proportion of total rental market listings have already been marked as ‘let agreed’, providing a gauge of how quickly available stock is being secured by tenants.
Across England as a whole, demand now stands at 29.7%, having climbed by 2.3% since Q1 2026 and by 0.3% on an annual basis. The continued improvement suggests that tenant appetite remains robust despite ongoing affordability pressures and legislative changes via the Renters’ Rights Act, with letting agents in many parts of the country continuing to process high volumes of deposits, rents in advance, and ongoing rental payments through their client accounts.
Highest rental demand
West Sussex remains home to the strongest level of tenant demand in England, with 49.8% of all rental listings already marked as let agreed. Rutland has climbed to second place at 48.4%, while Cumbria (45.0%), Gloucestershire (44.7%) and Warwickshire (44.3%) also record particularly strong levels of tenant demand.
Suffolk (43.9%), Cornwall (43.3%), Hertfordshire (42.6%), the Isle of Wight (42.3%), and Shropshire (42.3%) complete the top ten, underlining the broad spread of high-demand rental markets across England.
Strongest quarterly increases
Rutland recorded the largest quarterly increase in tenant demand, rising by 9.0% during Q2. Worcestershire also saw a significant uplift of 8.6%, followed by Norfolk (7.6%), Gloucestershire (7.3%), the City of London (7.2%), and Oxfordshire (7.1%).
West Yorkshire also posted strong quarterly growth of 6.9%, while Lincolnshire (6.3%), Warwickshire (5.5%), and South Yorkshire (5.5%) rounded out the strongest quarterly performers.
Strongest annual growth
On an annual basis, Rutland again led the way, with tenant demand increasing by 18.6% compared with Q2 2025. Norfolk also recorded substantial annual growth of 9.9%, while Warwickshire climbed by 8.2%.
Cumbria posted annual growth of 6.6%, with the City of Bristol increasing by 4.3%, Nottinghamshire by 3.9%, Shropshire by 3.4%, and Lincolnshire by 3.3%. Gloucestershire (2.6%) and North Yorkshire (2.5%) also recorded notable annual improvements.
The latest figures demonstrate that tenant demand continues to strengthen across much of England, with many counties seeing sustained quarterly and annual growth. For letting agents, continued market activity means increasing volumes of client money passing through their businesses, reinforcing the need for robust client accounting processes, effective financial controls, and strong compliance standards.
Chris Mason, COO of The Letting Partnership, commented:
“Tenant demand has continued to build through the second quarter, which is encouraging for the wider rental market but also reinforces the operational pressures many letting agents continue to face, especially in a post Renters’ Rights Act market.
Every successful tenancy involves client money moving through an agency, whether that’s deposits, rent in advance, or ongoing rental payments. As demand increases, so too does the responsibility on agents to ensure those funds are managed accurately, securely, and in full compliance with regulatory requirements.
The markets seeing the highest levels of tenant activity are often those where client money volumes are greatest, making strong accounting processes and financial oversight increasingly important. As transaction numbers rise, even small operational weaknesses can become much more significant if they are not identified and addressed.
At the same time, the regulatory landscape continues to evolve, with agents expected to demonstrate increasingly robust compliance alongside delivering excellent service to landlords and tenants. The agencies that invest in resilient systems, effective controls, and independent oversight will be best positioned to manage that growing responsibility while continuing to build trust with their clients.”
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