8:06 AM, 4th October 2022, About A year ago
Tenant demand is rising across England’s rental market with eager tenants pushing the national figure up by 7% between the second and third quarters of this year, research reveals.
The findings from estate and lettings agent, Barrows and Forrester highlight that demand has shot up by as much as 15% in some parts of the country.
The Barrows and Forrester Rental Demand Index monitors rental listings across the country, taking an average demand score for each county based on the number of properties already let as a percentage of all rental listings.
This then highlights where demand for rental homes is at its highest.
The figures show that rental demand across England is currently sitting at 46%, having seen good quarterly growth of 7%.
In terms of the strongest rental markets currently, landlords in Bristol, West Sussex and Bedfordshire are seeing the highest demand.
Across Bristol, the index shows, 66% of all rental homes listed have already been taken by tenants, with this demand also up 6% on the previous quarter.
In West Sussex, demand is 61% despite a -5% quarterly decline while in Bedfordshire, demand sits at 57% having increased by 6%.
Other areas where demand for rental homes is hot at present include Hertfordshire, East Sussex, Cambridgeshire, and Suffolk (56%).
While in Bath and North East Somerset, Rutland and Dorset, more than half of all rental homes have already been let (55%).
In terms of quarterly performance, nowhere has seen demand increase more than the City of London where it has grown by 15%, suggesting the rental market decline caused by pandemic restrictions within the workplace is well and truly in reverse.
Nottinghamshire has also enjoyed good growth of 12%, while West Yorkshire and the West Midlands have each seen growth of 11%.
In both Tyne & Wear and Greater London, rental demand has increased by 10% this quarter – and in Merseyside and East Sussex demand is up 9%.
Growth has also been above the national average in Dorset and Berkshire, in both of which it is up 8%.
The largest quarterly declines have been reported in the Isle of Wight (-12%), Cornwall (-12%), Dorset (-8%), and Shropshire (-6%).
The managing director of Barrows and Forrester, James Forrester, said: “Demand for rental properties has continued to return to the market following a tough pandemic period, which touch wood, seems well and truly behind us now.
“More and more of us are returning to work or higher education in new locations, which has helped bolster the number of tenants looking for accommodation.”
He added: “Of course, there remains a shortage of homes to meet this demand, largely due to the government’s campaign against the buy-to-let sector and you’d need only look at the issues facing many students in securing term time accommodation to see more needs to be done.
“The demand for rental homes is only likely to grow stronger over the coming months, as the current economic landscape forces many to remain renting having been priced out of owning their own home.”
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