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

Estate Agent Talk

Property expert reveals SIX common house-buying errors

Property expert reveals SIX common and easily avoidable house-buying errors that you’ll regret further down the line Viewing a potential new home is exciting, but many buyers and renters get caught up in the decor and the layout and ignore some potential red flags that may mean they’ll regret their choice a few months down…
Read More
Breaking News

Half of homebuyers barely know the area they move to

Nearly half of homebuyers move to neighbourhoods they barely know – So how do you find the right home if you aren’t familiar with the area? New research from The Property DriveBuy reveals that nearly half of homebuyers are unfamiliar with their new neighbourhoods before moving in, with more than one in five admitting they…
Read More
Estate Agent Talk

The Role of Virtual Reality in the Future of Real Estate Sales

Technology continues to reshape the real estate industry, changing how buyers discover properties, how sellers showcase them, and how agents facilitate transactions. One of the most exciting innovations making waves is virtual reality (VR). What once seemed like science fiction—walking through a home without stepping foot inside—has now become a practical, powerful sales tool. For…
Read More
Estate Agent Talk

Why Are People Moving to North West London?

North West London has become an increasingly popular choice for people looking to relocate within the capital. It offers a unique blend of convenient transport links, diverse communities, and a wide range of housing options, which appeals to professionals, families, and young people alike. In this post, we explore some of the reasons why more…
Read More
Breaking News

Breaking Property News 24/09/25

Daily bite-sized proptech and property news in partnership with Proptech-X.   Instant Valuation Tool – IVT – and premium lead management dashboard available for all Nurtur, a leading property marketing technology provider, has announced that its popular Instant Valuation Tool (IVT) and premium Lead Management dashboard are now available free of charge to estate agents,…
Read More
Breaking News

Breaking Property News 23/09/25

Daily bite-sized proptech and property news in partnership with Proptech-X.   PAT Testing explained: What Landlords, Agents and Operators need to know What Is PAT testing? PAT stands for Portable Appliance Testing. It’s the process of checking electrical appliances—anything that plugs into a socket—to make sure they are safe to use. This includes everything from…
Read More