England’s tenant demand hotspots revealed

England’s tenant demand hotspots revealed

0:03 AM, 10th January 2024, About 6 months ago

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Somerset is the most sought-after county for renters in England, according to a new report by Zero Deposit.

The firm’s research is based on data from the final quarter of 2023 which shows that 50% of all rental properties in Somerset have already been taken by tenants.

That figure makes it the hottest spot in the rental market.

Other counties with high tenant demand include Bedfordshire, Suffolk, West Sussex and Essex, where 49%, 49%, 48% and 46% of rental properties respectively have been let agreed.

‘Final quarter of the year is often a more subdued’

The firm’s chief executive, Sam Reynolds, said: “The final quarter of the year is often a more subdued one when it comes to rental market demand, with many tenants having already made their move early in the year, or deciding to wait until January arrives to do so.

“So, it’s not surprising to see such a widespread reduction in demand levels on a quarterly basis.

“But despite these external factors, tenant activity remains robust across many areas of the market and landlords continue to benefit from high demand for their rental properties.”

He added: “This demand has, of course, been intensified by the ongoing imbalance between the sheer number of tenants within the market versus the level of rental market stock available.”

Counties where tenant demand has increased

The report also reveals the counties where tenant demand has increased or decreased compared to the previous quarter and the same period last year.

The Isle of Wight saw the biggest quarterly increase in tenant demand, with a 5% rise from Q3 to Q4 2023.

Shropshire, Cornwall and North Yorkshire also experienced slight increases of 2% and 1% respectively.

Lancashire was the county with the largest annual increase in demand, with a 4% rise from Q4 2022 to Q4 2023.

Tyne and Wear, Worcestershire, Oxfordshire and Cumbria followed with 3% increases each.

The lowest tenant demand in England

However, West Yorkshire had the lowest tenant demand in England, with only 19% of rental properties being let agreed.

Nottinghamshire, the City of London, West Midlands and Leicestershire also had low demand, with 20% and 21% respectively.

The report also shows that tenant demand across England dropped by 9% from Q3 to Q4, and by 4% annually, as the rental market slowed down for the festive season.

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