England’s rental market recorded modest national growth in the second quarter of 2025, but new data from FCC Paragon reveals that behind the headline figures, a number of so-called ‘low profile’ counties are leading the charge in terms of both rental demand and yield opportunities.
According to the latest analysis, national rental demand rose by 1.2% quarter-on-quarter, with 29.4% of all listed homes successfully let between April and June. But the real story lies in the sharp regional variations – and the emergence of key counties as growing hotspots outside the traditional high-demand urban centres.
Leicestershire recorded the most significant growth, with rental demand increasing by 7.8% in Q2, followed closely by West Yorkshire (+7.0%) and South Yorkshire (+5.3%). These gains point to a continued rise in rental interest in areas where affordability, employment access and lifestyle factors converge.
Northumberland (+4.9%), Merseyside (+4.8%), and Cumbria (+4.7%) also posted notable growth, reinforcing the trend of tenant migration to more affordable and often overlooked parts of the country.
Meanwhile, established lifestyle-driven rental markets remain strong. West Sussex leads the country with a rental demand rate of 50.7%, meaning over half of all homes listed to rent were successfully let in the quarter. Cornwall (45.7%), Suffolk (45.0%), Herefordshire (44.9%), and Wiltshire (44.4%) round out the top five, showing the sustained appeal of scenic, semi-rural areas that combine lower property costs with strong quality of life.
These regions are seeing consistent activity from retirees, families and remote-working professionals who continue to favour green space, coastline and village amenities over urban convenience.
Bekki Leaves, Managing Director at FCC Paragon, said the regional performance underlines the strength of demand outside traditional metropolitan hubs.
“While rental demand during the second quarter of the year has been somewhat modest when considering the overall national picture, it’s clear that regional hotspots are playing a pivotal role in supporting the market.
“Counties such as Leicestershire and West Yorkshire are showing impressive growth rates, reflecting strong local economies and rental needs. Meanwhile, established high-demand areas like West Sussex and Cornwall maintain their appeal, offering a mix of lifestyle benefits and housing availability.”
She added that despite the summer typically being a quieter period for tenant movement, current growth levels suggest that demand may accelerate into the second half of the year.
“As we head into the latter half of 2025, we anticipate the pace of the rental market to quicken – particularly from students preparing for the new university year, and from professionals relocating for work or family reasons.”
With affordability remaining a key driver of tenant choice, and hybrid working trends still shaping relocation decisions, the UK rental market is expected to remain highly localised – and investors are increasingly turning their attention to undervalued regional counties showing both yield potential and rising tenant demand.
