10:25 AM, 5th January 2023, About 11 months ago 7
Tenant demand is starting to fall across England with some areas seeing demand falling by up to -29%, research reveals.
The findings from lettings and agent, Barrows and Forrester, show that renter demand in England is currently sitting at 33.9% – after a quarterly drop of -12% between Q3 and Q4 of 2022.
Bristol saw the biggest decline in demand at -28.9%, followed by Nottinghamshire (-21.5%), the City of London (-20%), West Yorkshire (-18.7%), and Greater Manchester (-18.5%).
James Forrester, the managing director of Barrows and Forrester, said: “Rental demand is down across all but four areas of England and the rising cost of living and surging energy prices will be playing a significant part in this decline.
“Tenants are fully aware that landlords are seeing their own expenses rise, not least mortgage payments, and are passing these increasing costs to their tenants.
“As such, renters are choosing to stay put at the moment with tenancy agreements that were signed before the current economic crisis instead of exposing themselves to a market where prices are likely to get higher and higher.”
He adds: “As the cost-of-living crisis eases, whenever that might be, rental demand will certainly increase. But for now, tenants are staying put.”
The only areas that saw tenant demand growth in the past quarter include Durham where it grew by 12%.
Demand on the Isle of Wight has also increased by 3.5%, and there was a 1.9% boost for both Shropshire and Essex.
The rental demand hotspot in England currently is West Sussex where demand for rental properties sits at 56.1%.
This is followed by Bedfordshire (54.4%), Essex (54%), Bath & North East Somerset (51.5%), and Dorset (51.5%).
Meanwhile, demand is at its lowest in the West Midlands (19%), Leicestershire (20.8%), and West Yorkshire (21.3%).