Regional hotspots drive rental demand growth in Q2

Rental demand rose 7.8% in Leicestershire, the highest quarterly increase in England.

Related topics:  Landlords,  Rental Market
Property | Reporter
2nd July 2025
To Let 855
"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"
- Bekki Leaves - FCC Paragon

New data from FCC Paragon shows that while national rental demand across England rose modestly by 1.2% in Q2 2025, several regions are driving growth with significant quarterly surges.

Overall, 29.4% of all homes on the rental market in England had secured a tenant in the second quarter. But beneath this headline figure lies marked regional variation.

Leicestershire recorded the strongest increase, with rental demand up 7.8% on the previous quarter. West Yorkshire followed with a 7.0% rise, and South Yorkshire saw a 5.3% uplift, underlining a strong quarter for rental momentum in key Midlands and Northern regions.

Northumberland (+4.9%), Merseyside (+4.8%) and Cumbria (+4.7%) also posted healthy increases in demand, suggesting that interest is broadening beyond traditional urban centres.

In terms of overall demand levels, West Sussex remains the country’s most in-demand rental market, with 50.7% of listed homes already let. Cornwall follows at 45.7%, alongside Suffolk (45.0%), Herefordshire (44.9%) and Wiltshire (44.4%).

These counties continue to attract tenants seeking a combination of lifestyle appeal and affordability, particularly among families and retirees.

“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,” said Bekki Leaves, Managing Director at FCC Paragon.

“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.”

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