The latest Landlord Trends research from Q3 2025reveals that more than two thirds (68%) of landlords continue to describe tenant demand in their area as ‘strong’, despite this being down 11% year-on-year.

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

Just 5% of landlords report weak demand, which Pegasus says underlines the continued resilience of tenant demand across most parts of the market.

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

Meanwhile, 44% of landlords reported that they had experienced an empty property at some point during the previous 12 months, up 7% on Q2.

Pegasus says the findings suggest that the rental market may be moving into a more stable phase.

While demand remains firm, affordability constraints and wider economic pressures appear to be tempering the pace of activity, bringing conditions closer to longer-term norms.

Pegasus Insight founder and managing director Mark Long says: “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.”