New data reveals that landlords in the south of England are seeing soaring demand from renters.

According to the latest figures from property experts Zero Deposit, more than a third of all rental properties in England found tenants in the third quarter of this year. This represents a 1.7% jump in just three months and a healthy 3.3% rise since the beginning of 2024.

So where are the rental hotspots? You guessed it – the South! The twelve counties with the highest tenant demand are all located south of the Watford Gap, with West Sussex taking the crown. 55% of rental properties in West Sussex were snapped up in the third quarter, leaving landlords rubbing their hands with glee.

Other southern hotspots include:

• Wiltshire: 50.1% of rentals let
• Hertfordshire: 48.4%
• Somerset: 47.6%
• Cambridgeshire: 47.4%

Meanwhile, up north… it’s a different story. Landlords in Nottinghamshire are struggling to find tenants, with just 20.8% of properties successfully let. East Riding of Yorkshire (25.3%) and the City of London (26.2%) are also experiencing sluggish demand.

But what’s driving this north-south divide? Sam Reynolds, CEO of Zero Deposit, suggests a few potential factors:

• Renters Rights Bill: This upcoming legislation aims to give tenants greater security, potentially boosting their confidence and encouraging more people to rent. However, it could also discourage landlords from offering properties, as it makes it harder to evict tenants.
• Capital Gains Tax Changes: The government is expected to announce changes to Capital Gains Tax in the upcoming Autumn Budget. If Labour increases the tax payable on property sales, as expected, it could deter landlords from investing in rental properties, further squeezing supply and pushing up rents.

The bottom line? The rental market is on the move, with demand surging in the south while the north lags behind. Landlords should keep a close eye on upcoming legislation and tax changes, as these could have a major impact on their investments.