Overall, 30% of landlords said demand was ‘very strong’ and 38% said it was ‘quite strong’, while just 5% of landlords reported weak demand, according to the latest Landlord Trends insight by Pegasus Insight, which covers Q3 2025.
Some 71% of landlords operating in the North East reported the strongest level of demand in the quarter, which reflects the same picture as Q2, while the East Midlands generated the weakest demand at 60%.
The incidence of voids increased in Q3, 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.
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.”
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According to research by Paragon, around 63% of landlords plan to use a special purpose vehicle (SPV) for upcoming buy-to-let (BTL) purchases, research has found.
