Tenant demand climbed across the rental sector during the third quarter of this year, with West Sussex home to the highest demand, analysis from lettings acquisition firm Dwelly has found.
Across England as a whole, just under a third (31%) of all rental properties had been snapped up by tenants in Q3 – a 1.7% increase on the previous quarter.
In West Sussex 47.2% of all rental listings were already let. Cumbria follows closely at 41.3%, while Somerset (41.8%), Suffolk (41.4%), Wiltshire (43.0%) and Hampshire (40.5%) also rank among the areas with the highest demand for rental homes.
Sam Humphreys, head of M&A at Dwelly, said: “Whilst uncertainty remains due to the upcoming Renters’ Rights Bill, it’s clear there is no let-up in rental demand and across much of the country, a very high proportion of rental stock continues to let quickly, underlining the strength of tenant appetite.
“For landlords, this demonstrates that the fundamentals of the market remain strong. Even with legislative changes on the horizon, there is no shortage of tenants needing homes, which means rental returns remain resilient. The real challenge is ensuring that properties are managed in a way that keeps pace with both tenant demand and regulatory requirements.
“This is where letting agents have a vital role to play. By adopting the right processes and technology, they can help landlords reduce the administrative burden, stay compliant and, most importantly, improve the overall tenant experience.”
Nottinghamshire was the coldest spot of the rental market in Q3, where fewer than one in five (18.4%) of rental properties had found a tenant.
When it comes to the sharpest quarterly increases, Rutland has seen demand climb by 9.2% in the last quarter, with the City of London up 8.6% and Northumberland up 6.5%.
Norfolk also saw a 4.5% uplift, with Greater London not far behind at 4.4%.
At the other end of the spectrum, Herefordshire has recorded the largest quarterly decline, with demand falling by 12%.
The Isle of Wight has dropped by 9.8%, Cornwall is down 7.5%, Gloucestershire has fallen 5.6%, and North Yorkshire is down 5.3%.
