Surprising city tops tenant demand index

A surprising city has been named as the strongest location for tenants looking for homes to rent, according to Pepper Money.

Its analysis reveals that Chichester, not London or Oxford, ranks first with 659 searches per 10,000 people, ahead of Exeter on 369 and Bath and North East Somerset on 340.

The lender’s new rent index analysed 42 locations using search interest, stock levels, rent inflation, time on market and average monthly costs by property type.

Pepper Money said the West Sussex city also recorded an average monthly rent of £1,201.

However, Chichester also appeared among the locations with a longer average time on market, at 389 days.

Tenants are moving fast

The lender’s sales director, Paul Adams, said: “Our research highlights strong levels of search interest across 42 locations, alongside very short letting periods.

“Properties such as semi-detached homes and three-bedroom homes are on the market for just 122 days and 132 days, respectively.

“This suggests that renters are moving fast to secure their homes in an extremely competitive market, and it’s something that landlords can see and work with renters to secure desired tenants.”

He added: “As this shift in renting continues, there is an opportunity for renters and landlords to work more closely together.

“Landlords who understand the evolving needs of their renters, such as longer tenancies and, in some cases, more space, are at a greater chance of succeeding and securing those longed-for tenants in this competitive market.”

Tenant demand index

Bath and North East Somerset came second in the index, with 340 searches per 10,000 people, average monthly rent of £1,486 and rent inflation of 9.7%.

The area also ranked near the top for longer time on market, at 525 days, but higher search levels and rising rents placed it behind Chichester in the overall table.

York was third, recording 243 searches per 10,000 people, average monthly rent of £1,055 and rent inflation of 6%.

Pepper Money said the city’s annual rent growth was just above the 5.8% average across the study.

Oxford followed in fourth place, with 143 searches per 10,000 people, 56 properties available per 10,000 people, average monthly rent of £1,629 and rent inflation of 7%.

Exeter completed the top five, recording 369 searches per 10,000 people, and an average monthly rent of £1,130 and rent inflation of 4.3%.

Chelmsford, Plymouth, St Albans, Winchester and Swansea also appeared in the top 10.

Low rental demand

At the other end of the index, Salford ranked lowest with the lender saying the area had 204 properties available per 10,000 people, 451% above the study average of 37.

Salford recorded 165 searches per 10,000 people, average monthly rent of £1,077 and rent inflation of 6.1%. Its average time on market was 193 days.

Peterborough was second from bottom, despite recording the quickest turnover in the study, with homes on the market for an average of 153 days.

Leeds was third from bottom, with 123 searches per 10,000 people, 120 properties available per 10,000 people, average monthly rent of £954 and rent inflation of 3.1%.

Newport and Coventry completed the five lowest-ranking locations.

Rental stock levels

The index also reveals that semi-detached homes spent 295 days on the market across the 42 areas analysed, while three-bedroom homes came off the market quickest at 280 days on average.

London remained the most expensive location in the study, with tenants paying an average of £2,247 per month.

That was 31% more than Oxford, which ranked second for monthly rent.

Southend-on-Sea had among the lowest levels of available stock, with six properties per 10,000 people.