Tenant demand strengthened across England during the third quarter, although the national picture masks significant differences between local rental markets.
Some 31.1% of rental listings were marked as let agreed in Q3 2026, according to analysis from LegalforLandlords. That represents a 1.4 percentage point increase compared with the previous quarter. However, demand remains broadly unchanged from a year earlier, down 0.1 points.
The Rental Demand Index measures the proportion of available rental listings that have reached let agreed status. For letting agents, the figures point to improving activity over the summer. However, local markets continue to perform very differently.
City of London and West Sussex lead demand
The City of London and West Sussex recorded the highest rental demand in England. In both areas, 43.5% of listings had reached let agreed. Herefordshire followed at 41.8%, with Hertfordshire at 41.3%. Warwickshire and Cumbria both recorded 40.1%, while Shropshire stood at 40%.
At the other end of the market, Tyne & Wear recorded the lowest demand at 18.3%. Nottinghamshire followed at 21.1%, with the East Riding of Yorkshire at 24%.
London rental demand jumps
The City of London also recorded the strongest quarterly increase. Demand rose by 13.5 percentage points during Q3. Bristol recorded a 5.4-point increase, followed by Greater Manchester at 4.5 points and Merseyside at 4.3 points. Greater London recorded a 3.9-point rise.
However, several markets moved sharply in the opposite direction. Rutland recorded the largest quarterly fall at 10.2 points. Gloucestershire and the Isle of Wight both dropped by 7.8 points.
The annual figures also show a mixed picture. Herefordshire recorded the strongest annual growth, with demand up 8.9 points compared with Q3 2025. Bristol increased by 6.7 points, while North Yorkshire rose by 5.9 points. The City of London was up 5.3 points and Staffordshire increased by 5.1 points.
Sim Sekhon, group CEO of LegalforLandlords, said: “After a period of intense competition for rental property, the latest figures suggest the market is becoming more nuanced. Demand is strengthening in some areas while easing in others, which means landlords can no longer rely on a one-size-fits-all approach to pricing or tenant demand.
“Understanding the dynamics of the local market is increasingly important when deciding where to set rents and how quickly to bring a property to market.
“For letting agents, the changing market also creates an opportunity to add greater value through better local insight and financial management.”
