The UK’s Top Six Cities with the Highest Tenant Demand in 2020
by Mashum Mollah Real Estate 24 August 2020
According to most recent figures from the Office of National Statistics, around one in five households in the UK live in private rented accommodation. This comes to a total of 4.5 million families – a 63% increase from ten years before.
So why are rental properties so popular in the UK? And what do tenants need to consider when renting a property in the cities with the highest tenant demand? Read on to find out.
Why Tenant Demand is So High
In the UK, the demand within the private renting sector has grown significantly and there are a number of factors that for this. The major reason is the lack of affordability for buying properties. Over 56% of renters polled in a recent survey said that they couldn’t afford to pay for a house deposit and 29% said they didn’t qualify for a mortgage.
Social mobility has played a large role in the growing demand for rental properties too. Certain cities attract more renters due to a high job market, quality of life, and the availability of cheaper lets due to a high investment in buy-to-let businesses. Also, access to higher education has seen students flock to cities each year to study at universities. The cities with large student populations may have a higher level of demand for rental properties as graduates often choose to stay there after completing their studies.
Which Cities are the Most Popular with Renters?
Outside of London, research into tenant demand has shown that the city with the highest demand for rental properties in Newport in Wales, where 35% of all rental homes listed on major portals were already let. The top six cities with the highest demand were:
- Newport – 35%
- Bristol – 34%
- Nottingham –33%
- Cambridge –33%
- Belfast –25%
- Plymouth –23%
In England’s capital, London, the six most popular boroughs for tenants were: Bexley, Bromley, Sutton, Lewisham, Merton, and Croydon.
With demand for rental properties so high, it’s important to stay ahead of the curve by setting up alerts to notify you when a property becomes available in your desired area(s). This means you’ll be first in line to arrange a viewing before the property is snapped up.
What to Consider When Renting in These Areas
When you’ve found the perfect property, it’s important to protect your finances, particularly as rent may be higher in sought-after areas. Your first steps should be to make sure your deposit is protected in a scheme, check that the inventory is accurate, and make a note of the meter readings. If your bills aren’t included in your rent, be aware that you aren’t obliged to stick with the gas or electricity supplier; switching could save you a considerable amount of money.
To give you peace of mind, think about taking out a tenants content insurance policy. This will cover any accidental damage to the landlord’s contents as well as your personal possessions in the event of fire, theft, accidental damage, and other risks.
Tenant demand may be higher than ever but there are ways to secure your ideal property, even in the UK’s most popular rental areas. Make sure you keep up-to-date with rental listings using apps and alerts and when you’ve found the perfect place, make it a priority to protect your finances and your possessions. This will put you in the strongest position when renting and also if you plan to buy a property in the future.