Market update – one in 20 landlords say tenant demand is now ‘weak’

Market update – one in 20 landlords say tenant demand is now ‘weak’

New research confirms the emerging trend that tenant demand in the private rented sector is softening.

Pegasus Insight’s study – looking at Q3 2025 – reveals that 68% of landlords describe tenant demand as ‘strong’.

That’s down 11 percentage points year-on-year. 

Overall, 30% of landlords say demand is ‘very strong, and 38% ‘quite strong’. 

Some 5% report weak demand, underlining resilience across most of the market. 

Landlords in the North East reported the strongest demand this quarter (71%), as in Q2, with the East Midlands the weakest (60%). 

Voids increased this quarter, with 44% of landlords reporting an empty property at some point during the previous 12 months, up 7%. 

A Pegasus Insight spokesperson says: 

“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.”

This article is taken from Landlord Today