Rental demand remains resilient in 2026 as renters prioritise space and affordability

The latest research from Benham and Reeves has found that around a quarter of all rental homes currently listed across Britain have already secured a tenant, highlighting continued underlying demand despite ongoing regulatory uncertainty.

Benham and Reeves analysed current rental market listings to highlight current rental demand, the size of rental properties currently most in-demand amongst renters, as well as commissioning a survey of UK renters to ascertain what rental property features were most sought after in the current market.

The research shows that, currently, 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.

The research also highlights 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. However, 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. 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.

Additional insight from Benham and Reeves found that, when it comes to current rental features, traditional priorities continue to dominate, with affordable monthly rent cited as the most important factor by 26% of respondents.

Location and transport links and property size and layout both ranked second at 10%, followed closely by pet-friendly policies at 9%.

Other key considerations included responsive landlords or managing agents, outdoor space, and quiet surroundings, while features such as high-speed broadband, modern appliances, and flexible tenancy terms ranked lower.

Director of Benham and Reeves, Marc von Grundherr, commented:

“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. 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.

Regionally, demand remains strongest across the East of England, South East, and South West and when it comes to property type, two-bedroom homes continue to attract the greatest level of interest nationwide.

However, 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 seen for smaller properties. This points to a clear shift in renter behaviour, with more people remaining in the sector for longer and prioritising space to accommodate evolving lifestyles, home working, and family life.

Our latest insight also shows that traditional priorities still dominate decision-making, with affordability, location, and property size ranking well ahead of more lifestyle-led features. That said, demand for pet-friendly homes remains strong, and the forthcoming removal of blanket pet bans under the Renters’ Rights Act is a positive step that should help improve choice for tenants.”