Tenant demand soars – but the north-south divide widens

Tenant demand soars – but the north-south divide widens

0:02 AM, 9th October 2024, About 2 months ago 3

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There has been a significant increase in tenant demand for rental homes in England which has climbed by 3.3% since the start of the year.

The research from Zero Deposit examines demand in each county in England based on the number of let properties compared to the total available stock.

The index found that in Q3, 35.1% of rental properties listed on the market had found tenants, a quarterly increase of 1.7% – a year-to-date increase of 3.3%.

The market in the West Midlands experienced the most significant quarterly growth, with demand rising by 5.6%.

Leicestershire followed closely with a 5.2% increase, followed by West Yorkshire (4.5%), Greater London (4.1%) and Devon (4%).

‘Good rental demand in England’

The firm’s chief executive, Sam Reynolds, said: “We’re continuing to see good rental demand in England, especially when looking at the rate of growth since the beginning of 2024.

“It’s important to note, however, that the most sought-after markets remain very much in the southern counties of England.

“In fact, the 12 counties with the strongest demand are all located in the south, with Nottingham’s entry at number 13 being the first showing for any county in the midlands or north of England.”

He added: “While things are looking quite good for England’s rental market, there are two things on the horizon that are sure to have a big impact on tenant demand.

“The first is the Renters Rights Bill which is designed to protect tenants and give them a more secure rental experience.

“This added tenant confidence could bring more people into the rental market.”

‘Harder for landlords to remove tenants’

Mr Reynolds continued: “However, there is also the fact that the new bill makes it harder for landlords to remove tenants.

“This may act to reduce supply as more tenants stay put for longer periods of time, reducing market churn.”

The other issue, Mr Reynolds says, is the potential change to Capital Gains Tax which could ‘deter landlords from the private rented sector’.

Hottest rental market in England

The hottest rental market in England is currently West Sussex, where tenant demand reached 55% in Q3, researchers found.

Wiltshire, Hertfordshire, Somerset and Cambridgeshire also saw strong demand, with more than 45% of rental properties finding tenants.

However, rental demand in some counties lags significantly behind.

Nottinghamshire recorded the lowest demand at 20.8%, followed by East Riding of Yorkshire (25.3%) and the City of London (26.2%).


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NewYorkie

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11:00 AM, 9th October 2024, About a month ago

“This added tenant confidence could bring more people into the rental market.”
Where they will find their confidence seriously dented because many landlords will have exited the PRS, further reducing the availability of rented accommodation.

Cider Drinker

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11:23 AM, 9th October 2024, About a month ago

More tenants arrive on Treasury Island every day. Of course demand for rental properties rises.

Meanwhile, Labour continue to encourage landlords to sell up.

The options are very clear. If you want security, buy your own home. If you cannot afford to buy your own home, buy a tent.

Paul Essex

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12:51 PM, 9th October 2024, About a month ago

There isn't now and never was a north-south divide. The actual numbers show it was a London commute divide. Try telling people in rural Devon or Lowestoft or sittingbourne that they are part of the prosperous south.

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