Tenant demand for rental homes fell across most of England during Q4 2025, with only six counties recording growth as the market entered its seasonal slowdown, according to research from Dwelly.
The property firm analysed rental stock across England, examining the proportion of listed properties that had secured tenants compared to the previous quarter.
During Q4 2025, 25% of all rental homes on the market secured tenants, marking a 6.1% drop from Q3 as the market wound down before Christmas. Many renters postponed moving plans until the new year.
The slowdown proved more severe than usual, with rental demand sitting 2.7% lower year-on-year. Beyond seasonal trends, some renters appear to have delayed decisions while waiting for clarity on changes under the Renters' Rights Act.
Six counties across England bucked the national trend with rising rental demand during Q4. Herefordshire recorded the largest quarterly increase at 8.7%, followed by North Yorkshire at 7.1%, Warwickshire at 4.7%, Somerset at 1.8%, Devon at 0.7% and Tyne and Wear at 0.7%.
Herefordshire also led annual growth, posting the biggest year-on-year increase in rental demand at 4.7%. Eight other counties saw demand improve compared to Q4 2024.
"Rental demand softened in Q4 and this is a seasonal trend we've come to expect at a time of year when attention shifts to the Christmas period and spending time with family and friends," said Sam Humphreys, head of mergers and acquisitions at Dwelly.
"As a result, plans to secure a rental home are often pushed into the new year, and we expect to see activity pick up again over the coming months as life returns to normality."
The Renters' Rights Act has influenced market behaviour despite recent approval providing some clarity. "Of course, the Renters' Rights Act has also had an influence on the market and while there is now greater clarity following its approval, we're still waiting for the finer details," Humphreys added.
"So it's understandable that some tenants are still choosing to sit tight until this information is provided, which helps explain why demand was lower than usual during the final quarter of last year."
