Lettings Market Update: What’s Driving Tenant Demand in 2025?
By Bourne Estate Agents | Created on 6th July 2025
The lettings market across Surrey and Hampshire is thriving in 2025. For landlords, investors, or anyone thinking of entering the rental market, this update covers key factors driving high tenant demand and why this matters in towns like Farnham, Guildford, Godalming, Alton, Petersfield, Woking, Cobham & Ash Vale.
1. Tenant Demand Is at an All-Time High
Rightmove data and local trends show a highly active rental market, with agencies in our areas seeing properties let within days—and sometimes even before going live online.
For example:
Farnham & Alton: Shortage of 2-bed homes means strong competition from working professionals and young families.
Guildford, Cobham & Woking: Proximity to London and excellent schools keep demand steady, especially for family homes and apartments with outside space.
Petersfield, Ash Vale & Godalming: Popular with relocators looking for space, countryside, and commuter links.
The story is the same across the board: not enough rental stock to meet demand.
2. Rents Continue to Climb
The Office for National Statistics reports:
UK average rent: £1,339/month (up 7.0% YoY)
South East average: £1,394/month (up 7.1%)
Locally, rents are performing just as strongly:
Guildford: 1-bed flats now averaging £1,200/month, 3-bed houses £2,000+
Alton & Petersfield: consistent rental growth of 6–8% YoY, particularly for 2-3 bed houses
Farnham, Ash Vale & Godalming: achieving £1,800–£2,200/month for quality family homes near schools
Cobham: Premium rental market with 3-4 bed homes averaging £2,500–£3,200/month due to demand from corporate tenants and families relocating from London
Why Tenant Demand Remains High
A few reasons why demand is so sustained in 2025:
Mortgage affordability: Higher rates are keeping would-be buyers in the rental market longer
Work-life balance: More tenants are seeking homes with outdoor space or a spare room to work from home
Quality of life: Towns like Farnham, Guildford, Cobham and Alton offer the perfect mix of green space, transport links and community
Lack of stock: Fewer Properties are coming to the market, increasing competition amongst tenants
Market Snapshot: Bourne Locations
Town
Rent Growth YoY
Average Rent/month
Guildford
~8%
£1,800–£2,200
Farnham
~7%
£1,500–£1,900
Woking
6–7%
£1,600–£2,000
Alton
~6%
£1,300–£1,700
Godalming
~7%
£1,600–£2,100
Petersfield
5–6%
£1,400–£1,800
Cobham
~6%
£2,500–£3,200
Ash Vale
~7%
£1,400–£1,900
What This Means for Landlords
Excellent time to let: With rising rents and low voids, landlords are seeing some of the strongest yields in years.
Speed matters: Most homes are letting within days, having tenants lined up before marketing is becoming more common.
Presentation counts: Well-maintained, fairly priced properties perform best and attract better-quality tenants.
We’re Letting Faster Than Ever
At Bourne, we have let multiple homes before they even hit the market, thanks to a database of ready tenants actively looking in your area.
We are a refreshing, fully independent business that has quickly built up an enviable network of branches across Surrey and Hampshire. Two thirds of our business comes via recommendations, demonstrating that we are totally committed to providing our clients with a proactive and dynamic approach to moving, from start to finish.
