Although tenant demand in the private rented sector has softened slightly over the past year, it remains high by historical standards according to Pegasus Insight.

In its latest Landlord Trends report based upon Q3 2025 data it found that 68% of landlords describe tenant demand in their area as ‘strong’, despite this being down 11% year-on-year. Whilst overall 30% of landlords say demand is 'very strong, and 38% 'quite strong with just 5% reporting weak demand.

Mark Long, founder and managing director of Pegasus Insight, said: “This slight easing in perceived tenant demand doesn’t indicate any fundamental weakness in the rental market. Demand remains strong by historical standards, but we are starting to see a shift away from the exceptionally tight conditions of recent years. 

“Affordability is now playing a bigger role in shaping behaviour on both sides of the market. Tenants are more cautious about moving, while landlords are balancing rising costs, regulation and the realities of what renters can afford. The result is a market that still has solid underlying demand, but one that is gradually becoming more measured and sustainable.”

Landlords operating in the North East reported the strongest level of demand in Q3 2025 (71%), as in Q2, while the East Midlands generated the weakest demand (60%). 

Voids meanwhile increased with 44% of landlords reporting that they had experienced an empty property at some point during the previous 12 months, up 7% on the previous quarter.