Demand for rental properties has increased by 2% between the first and second quarters of this year, although it remains -3% below levels seen this time last year.
Leading lettings management platform, Howsy, analysed tenant demand based on rental stock listed across all of the major platforms. The demand percentage is calculated based on the level of rental stock that already has a let agreed as a percentage of all stock listed to gauge tenant demand and see where the most in-demand locations for rental properties are.
The figures show that Bristol (43%), Newport (40%), Nottingham (37%), Bournemouth (36%) and Portsmouth (34%) are currently the hottest pockets of the UK rental market.
Aberdeen (6%), Edinburgh (7%), Swansea (9%), Leeds (14%) and London (14%) are home to the lowest current tenant demand.
Bournemouth has seen the most significant increase in tenant demand on both a quarterly and annual basis. Annually, it’s up +5%, but the town has seen tenant interest explode over the last quarter, up by +9%.
Sheffield (+7%), Plymouth (+7%), Liverpool (+6%) and Southampton (+5%) have seen some of the most substantial quarterly uplifts in demand, while Portsmouth (+3%), Newcastle (+3%) and Newport (+2%) have seen the largest annual increase.
London rental demand has declined by -7% annually and -4% quarter to quarter.
However, there are plenty of rental pockets across the capital that have seen tenant demand climb. Havering (+19%), Waltham Forest (+10%), Bexley (+10%), Hillingdon (+10%) and Sutton (+7%) have all seen demand increase notably between the first and second quarter of this year.
Annually, Bexley (+8%), Enfield (+6%), Hillingdon (4%), Sutton (+2%) and Havering (+1%) have seen the largest increases.
Founder and CEO of Howsy, Calum Brannan, commented:
“Despite lockdown presenting tenants with additional hurdles when looking to rent, it would seem demand remains alive and well in many parts of the UK market. Albeit not quite at the same level as this time last year which is understandable.
This demand will be very welcome news for landlords, in particular, who may have seen their buy-to-let investment dwindle in profitability of late due to the absence of a tenant.
As with the broader property sales market, it seems as though many are looking to a more relaxed pace of life post lockdown, with Bournemouth seeing some incredible increases in rental demand in the second quarter of this year.
With the sun, sea and a consistent string of tenants coming in each year via the university, the town is undoubtedly a safe bet when it comes to investing in a rental property.”