Lettings demand for rental homes in England fell 7.3% between Q3 and Q4 2024 and was down by 2.6% annually according to research by Zero Deposit.

A surprise decline in lettings demand is the result of seasonal factors rather than an indication of a softening market says Zero Deposit CEO Sam Reynolds (pictured).

Analysis by his company found that tenant demand for rental homes in England fell by 7.3% between Q3 and Q4 2024, while demand was also down by 2.6% on an annual basis.

There were, though, four counties that bucked the trend – Somerset had a quarterly increase of 3.2%, Cornwall’s rental demand was up by 2.8%, North Yorkshire’s by 1.4% and Warwickshire’s by 1.1%.
Drop in demand

There was no change in London and some of the largest falls were in Leicestershire, where demand dropped by as much as 15%, the Isle of Wight by 12.1%, West Midlands by 11.9%, Devon was down 11.6% and Buckinghamshire by 11.5%.

Reynolds says: “A reduction in rental demand during the final quarter of last year may suggest that the current rental crisis is easing but this is far from the reality. The market continues to suffer from a severe imbalance when it comes to the demand seen for rental properties versus the supply of stock available across the market.

“Despite this, the rental market isn’t immune to the seasonal trends that impact the rest of the property sector and so the decline in demand seen during Q4 can almost certainly be attributed to these seasonal factors.

“In the run-up to Christmas, many tenants will have already made their move and those who haven’t are more likely to put their plans on hold until the dust has settled on the festive period.

“Now that a new year is underway, we expect demand will once again start to climb as tenants look to make their move.”

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