Rental demand remains resilient despite market uncertainty

Recent analysis by Benham and Reeves reveals that 25.1% of rental properties currently listed across Great Britain have already secured tenants. This figure indicates that rental demand remains robust at the start of 2026, despite ongoing uncertainties such as the implementation of the Renters’ Rights Act.

Marc von Grundherr, a director at Benham and Reeves, commented: “When it comes to current rental demand, around a quarter of all rental homes listed across Britain have already found a tenant. This is largely in line with the levels of activity we would typically expect to see at this time of year and suggests that, despite the ongoing uncertainty surrounding the implementation of the Renters’ Rights Act, demand remains resilient.”

Regional variations are evident, with the East of England leading the way where 34.8% of rental homes have been let. The South East and South West follow closely with 33.1% and 31.9% respectively. In contrast, Scotland shows weaker competitive pressure, with only 9% of listings taken.

Tenants increasingly prioritise space and property size

The data highlights a clear trend in tenant preferences towards larger properties. Two-bedroom homes attract the greatest interest across the UK, followed by one-bedroom properties which remain popular among singles and couples facing affordability constraints.

In regions such as the North East, Midlands, Wales, North West, Yorkshire, and the East of England, demand for larger homes is rising. Two and three-bedroom houses and flats are outperforming smaller units and studios, reflecting how tenants are adapting their expectations to accommodate changing lifestyles.

This shift is partly driven by households staying longer in rented accommodation and the need for additional space to balance work and family life under one roof. Extra rooms are often repurposed as home offices, childcare spaces, or for shared living arrangements, pushing space higher up tenants’ priorities.

What tenants value beyond size and affordability

A separate survey into tenant priorities found that affordability remains the top concern, cited by 26% of respondents. Transport connections and location jointly rank second at 10%, alongside property size and internal layout. Pet-friendly policies also feature prominently at 9%.

Other factors tenants appreciate include responsive landlords or agents, access to outdoor areas, and quieter neighbourhoods. However, lifestyle extras such as high-speed broadband, newer appliances, and flexible tenancy agreements were considered less decisive in choosing a rental home.

Implications for landlords and letting agents

For landlords and letting agents, these findings underline the importance of offering properties that meet evolving tenant demands, particularly in terms of space and flexibility. Properties with two or more bedrooms are likely to attract stronger interest, especially in regions where demand for larger homes is growing.

Understanding tenant priorities such as affordability, location, and pet policies can help landlords tailor their offerings and improve tenant retention. Additionally, recognising that tenants are staying longer and repurposing space within homes may influence decisions on property improvements and marketing strategies.