Around a quarter of all rental properties currently listed across Britain have already secured a tenant, according to new research highlighting continued underlying demand despite regulatory uncertainty ahead of the Renters’ Rights Act.

East and South lead demand rankings

Estate agent Benham and Reeves analysed current rental market listings to assess demand levels, finding that 25.1% of homes across Great Britain have already had a let agreed.

Demand is strongest in the East of England, where 34.8% of available rental properties have already been taken, followed by the South East at 33.1% and the South West at 31.9%. In contrast, Scotland currently records the lowest level of competition, with just 9% of rental homes let.

“Our analysis shows that when it comes to current rental demand, around a quarter of all rental homes listed across Britain have already found a tenant,” said Marc von Grundherr, director of Benham and Reeves. “This is largely in line with the levels of activity we would typically expect to see at this time of year.”

The firm’s research also shows clear trends when it comes to property size. Two-bedroom homes remain the most in-demand property type nationwide, accounting for the highest proportion of agreed lets, followed by one-bedroom properties.

Larger homes see stronger regional demand

In many regional markets including the North East, Midlands, Wales, North West, Yorkshire, and the East of England, demand for larger two and three-bedroom homes is outpacing that for smaller properties and studios.

Von Grundherr said this reflects the growing number of renters remaining in the sector for longer and prioritising additional space to support changing lifestyles, home working, and family life.

A separate survey conducted by Benham and Reeves found that traditional priorities continue to dominate tenant decision-making. Affordable monthly rent was cited as the most important factor by 26% of respondents, with location and transport links and property size both ranked second at 10%.

Pet-friendly policies ranked fourth at 9%, ahead of responsive landlords, outdoor space, and quiet surroundings. Features such as high-speed broadband and flexible tenancy terms ranked lower, suggesting core fundamentals remain the priority for most tenants.

Regulatory uncertainty has not dented appetite

The research suggests that despite ongoing uncertainty surrounding the implementation of the Renters’ Rights Act, demand remains resilient.

Von Grundherr added that demand for pet-friendly homes remains strong, and the forthcoming removal of blanket pet bans under the Act is a positive step that should help improve choice for tenants while giving landlords clearer guidelines on reasonable refusal grounds.

Opinion

The rental market’s continued strength provides some reassurance for landlords weighing up their options ahead of May’s regulatory changes. While the exodus narrative dominates headlines, the reality is that tenant demand remains solid in most regions. The shift towards larger properties reflects how the rental sector has matured, with longer tenancies and family formation becoming the norm rather than the exception. For landlords with two or three-bedroom stock outside London, the fundamentals look encouraging.