Tenant demand in the private rented sector has softened over the past year, but remains strong by historical standards, according to new landlord research.

Research carried out by mortgage market specialist Pegasus Insight shows that more than two thirds of landlords continue to report strong tenant demand in their local market, despite a modest year-on-year easing.

The latest Landlord Trends research found that 68% of landlords describe demand in their area as strong, down 11 percentage points compared with a year earlier.

Overall, 30% of landlords say demand is very strong, while a further 38% describe it as quite strong.

Just 5% report weak demand, underlining the continued resilience of the rental market across most regions.

Regionally, landlords in the North East reported the strongest tenant demand this quarter, with 71% describing conditions as strong, matching levels seen in Q2.

By contrast, the East Midlands recorded the weakest demand, although a clear majority of landlords in the region, 60%, still reported strong levels of interest from tenants.

The research also points to a rise in void periods. Some 44% of landlords said they had experienced an empty property at some point during the previous 12 months, an increase of 7% compared with the previous quarter.

Overall, the findings suggest the rental market may be entering a more stable phase after several years of intense pressure.

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

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.”