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.”

EAN Breaking News

Breaking News from the team at Estate Agent Networking. Have a new story to share with us? Then please get in contact today! When and where we can we will refer to third party websites with a 'live link back' where news was released first.

You May Also Enjoy

Breaking News

Property market beset by delays as conveyancer queries vary by an ‘alarming’ 8,176%

The scale of inefficiency in the property market was laid bare today by new analysis that reveals some conveyancers receive 83 times as many Land Registry queries as others. The number of requests sent to conveyancers to progress cases varied by an “alarming” 8,176%, ranging from 2.9 per 100 applications to 237, new analysis of…
Read More
Breaking News

Breaking Property News 8/09/25

Daily bite-sized proptech and property news in partnership with Proptech-X. MetaWealth and One United Partners launch €18 million tokenized real estate bonds opportunity in Bucharest Press Release London, UK & Bucharest, Romania Sept 2025  MetaWealth, a tokenised real estate investment platform, today launched a €17.9 million bonds basket targeting 19% annual returns, as part of its…
Read More
Estate Agent Talk

Hodge adds 95% LTV to Resi and Resi Retire propositions to support borrowers with complex income

New 95% loan-to-value (LTV) mortgage options have been added to Hodge’s Resi and Resi Retire propositions, giving customers from age 21 with varied income types greater access to the property market. These latest enhancements align with Hodge’s wider shift towards “lifelong lending”, bringing together core residential and retirement propositions, where lending is based on a…
Read More
Breaking News

Younger generations see homeownership as less important

The latest research from Yopa has revealed how attitudes towards homeownership vary between generations, showing that while the majority still aspire to own, its perceived importance has waned among younger buyers who also find the path to ownership more challenging than their parents did. Yopa surveyed* Baby Boomers, Generation X, Millennials and Generation Z to…
Read More
Breaking News

New Housing Secretary must focus on delivery, says FMB

The appointment of Steve Reed MP as Secretary of State for Housing, Communities and Local Government, following the resignation of Angela Rayner MP, must signal the start of a new drive for delivery of the Government’s stated target to build 1.5 million new homes, says the Federation of Master Builders (FMB). Brian Berry, Chief Executive…
Read More
Breaking News

Industry Response to the Resignation of Angela Rayner

Lawrence Turner, Director of Boyer said: “Angela Rayner’s planning reforms rightly acknowledged the scale of the Housing Crisis and the urgent need for bold, decisive action. Her resignation must not become an excuse for delay. The new Secretary of State now bears the responsibility to continue to unlock delivery and work to win the support…
Read More