Rental demand climbs 6% across the UK’s major cities
Innovative lettings management platform, Bunk, has released it’s latest look at the UK rental market and which cities are most in-demand amongst tenants and where has seen the largest uplift since Q2.
Bunk’s index looks at rental listings across all of the major property portals, taking an average demand score for the nation’s major cities based on where has the highest number of properties already let as a percentage of all rental listings.
The research highlights where the highest level of tenant demand currently is based on this supply/demand ratio.
The UK
The latest data shows that rental demand is up 6% quarter to quarter across the UK’s major cities and for the second quarter in a row, Bristol tops the table as the most in-demand location for rental properties. Tenant demand in Bristol is currently at 67.6%, having increased a further 17.5% since Q2.
Nottingham ranks second with demand for rental stock at 54.3%, followed by Cambridge with a demand score of 50%, as well as Bournemouth (42.9%) and Portsmouth (42.8%).
These five cities also account for the largest increases in tenant demand since Q2, with increases of between 11.2% and 18.7%.
Aberdeen remains the least in-demand city for rental demand at 8.9%, with Edinburgh (14.8%) and Newcastle (16.5%) also propping up the bottom of the table.
London
London rental demand has shot up 8.2% since the second quarter of 2019 with Lewisham topping the table as the most in-demand borough at 48.4%. Bromley (46.2%), Bexley (43.7%), Havering (43.7%) and Islington (43.3%) are also amongst the most in-demand boroughs for tenant demand in Q3.
Islington has also seen the largest uplift in rental demand quarter to quarter, up 17%, while Sutton is the only borough to see a drop since Q2 – down -0.7%.
Kensington and Chelsea, Westminster and Camden are the boroughs home to the lowest level of current tenant demand at 13.4%, 15.4%, and 22.3% respectively.
Co-founder of Bunk, Tom Woollard, commented:
“We continue to see the UK rental sector acting as the backbone of the property market with demand for rental properties climbing yet again.
With the start of the university term, it’s no surprise that some of the UK’s most prominent university towns have seen some of the largest uplifts in rental demand as thousands of students look to secure a place to live while studying.
For buy-to-let landlords, it remains one of the most prominent factors when deciding where to invest in a property and it’s clear why. While you can have the best yields around, they’re not worth a penny without the tenant demand to fill a property and this demand is abundant around the likes of Bristol, Notts, Cambridge, and Bournemouth.”
|
Top Line
|
Q2
|
Q3
|
Change
|
|
UK Cities
|
25.2%
|
31.2%
|
6.0%
|
|
London
|
21.4%
|
29.6%
|
8.2%
|
|
Major UK Cities Ranked by Quarterly Demand Change
|
|||
|
City
|
Q2
|
Q3
|
Change
|
|
Nottingham
|
35.6%
|
54.3%
|
18.7%
|
|
Bristol
|
50.1%
|
67.6%
|
17.5%
|
|
Cambridge
|
33.5%
|
50.0%
|
16.4%
|
|
Bournemouth
|
30.3%
|
42.9%
|
12.6%
|
|
Portsmouth
|
31.6%
|
42.8%
|
11.2%
|
|
Glasgow
|
25.4%
|
35.1%
|
9.7%
|
|
Leeds
|
15.5%
|
24.1%
|
8.6%
|
|
London
|
21.4%
|
29.6%
|
8.2%
|
|
Manchester
|
26.4%
|
32.7%
|
6.3%
|
|
Birmingham
|
23.1%
|
28.9%
|
5.9%
|
|
Southampton
|
24.0%
|
29.6%
|
5.6%
|
|
Liverpool
|
18.3%
|
22.9%
|
4.6%
|
|
Leicester
|
24.7%
|
29.1%
|
4.4%
|
|
Newcastle
|
13.9%
|
16.5%
|
2.6%
|
|
Plymouth
|
34.5%
|
36.4%
|
1.9%
|
|
Swansea
|
16.3%
|
17.9%
|
1.6%
|
|
Sheffield
|
22.0%
|
23.5%
|
1.5%
|
|
Newport
|
38.7%
|
40.1%
|
1.5%
|
|
Aberdeen
|
8.0%
|
8.9%
|
0.9%
|
|
Edinburgh
|
14.3%
|
14.8%
|
0.5%
|
|
Oxford
|
29.0%
|
28.8%
|
-0.3%
|
|
Belfast
|
21.2%
|
20.9%
|
-0.3%
|
|
Cardiff
|
21.1%
|
19.7%
|
-1.3%
|
|
London Boroughs Ranked by Quarterly Demand Change
|
|||
|
London Borough
|
Q2
|
Q3
|
Change
|
|
Islington
|
26.3%
|
43.3%
|
17.0%
|
|
Lambeth
|
26.2%
|
41.7%
|
15.5%
|
|
Hackney
|
27.3%
|
41.4%
|
14.1%
|
|
Tower Hamlets
|
24.1%
|
36.3%
|
12.2%
|
|
Southwark
|
30.9%
|
41.5%
|
10.6%
|
|
Haringey
|
30.3%
|
40.2%
|
9.9%
|
|
Newham
|
28.1%
|
36.8%
|
8.7%
|
|
Enfield
|
27.1%
|
35.5%
|
8.4%
|
|
Barnet
|
19.8%
|
28.1%
|
8.3%
|
|
Greenwich
|
32.9%
|
41.0%
|
8.1%
|
|
City of London
|
21.1%
|
28.9%
|
7.8%
|
|
Brent
|
19.8%
|
26.7%
|
6.9%
|
|
Hammersmith and Fulham
|
17.4%
|
24.2%
|
6.8%
|
|
Wandsworth
|
29.6%
|
35.9%
|
6.3%
|
|
Westminster
|
9.7%
|
15.4%
|
5.7%
|
|
Lewisham
|
43.0%
|
48.4%
|
5.4%
|
|
Hillingdon
|
27.7%
|
32.5%
|
4.8%
|
|
Camden
|
17.9%
|
22.3%
|
4.4%
|
|
Kensington and Chelsea
|
9.1%
|
13.4%
|
4.3%
|
|
Bromley
|
42.0%
|
46.2%
|
4.1%
|
|
Bexley
|
40.1%
|
43.7%
|
3.6%
|
|
Ealing
|
21.2%
|
24.5%
|
3.3%
|
|
Harrow
|
22.9%
|
25.7%
|
2.7%
|
|
Merton
|
37.3%
|
39.9%
|
2.6%
|
|
Barking and Dagenham
|
31.2%
|
33.1%
|
1.9%
|
|
Croydon
|
36.1%
|
37.9%
|
1.8%
|
|
Richmond upon Thames
|
28.1%
|
29.6%
|
1.5%
|
|
Waltham Forest
|
38.7%
|
40.0%
|
1.3%
|
|
Hounslow
|
25.6%
|
26.8%
|
1.2%
|
|
Redbridge
|
31.0%
|
32.2%
|
1.1%
|
|
Kingston upon Thames
|
30.7%
|
31.8%
|
1.1%
|
|
Havering
|
43.2%
|
43.7%
|
0.5%
|
|
Sutton
|
42.5%
|
41.8%
|
-0.7%
|
You May Also Enjoy
Understanding House Value in the UK: A Simple Guide
What does latent defects insurance cover?
Breaking Property News – 24/04/24
An average rate of 6% for the first time since November – Rightmove’s weekly mortgage tracker
Understanding Property Valuation: A Simple Guide