The latest research by Zero Deposit, the tenancy deposit alternative, has revealed where across the rental market landlords are currently benefiting from the highest levels of tenant demand for rental properties.
Zero Deposit analysed rental demand across each county in England based on the number of available rental properties that have already seen a let agreed as a proportion of total rental stock available.
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The figures for the final quarter of 2023 show that across England, 30% of all rental properties had already been snapped up by tenants. However, as the market started to wind down for the Christmas break, this did represent a reduction in demand to the tune of -9% versus the previous quarter and -4% annually.
Quarterly movement
Just a handful of counties saw tenant demand climb during the final quarter of last year. The Isle of Wight saw the largest uplift at +5% when compared to Q3, with Shropshire (+2%), Cornwall (+2%) and North Yorkshire (+1%) also seeing marginal uplifts.
Annual increases
On an annual basis, Lancashire saw the largest uplift in rental demand, with +4% more rental properties finding tenants versus Q4 2022.
Tyne and Wear, Worcestershire, Oxfordshire and Cumbria saw annual uplifts of +3%, with Cornwall (+2%), North Yorkshire (+2%), West Midlands (+1%) and Staffordshire (+1%) also seeing an increase on an annual basis.
Hottest rental spots
When it comes to the current hottest spots in the rental market, Somerset sits top, where half (50%) of all rental properties listed have already found a tenant.
Bedfordshire (49%), Suffolk (49%), West Sussex (48%) and Essex (46%) also rank amongst the hottest spots for tenant demand in the current market.
At 19%, West Yorkshire is home to the lowest level of rental demand at present, along with Nottinghamshire (20%), the City of London (20%), West Midlands (20%) and Leicestershire (21%).
Sam Reynolds, CEO of Zero Deposit commented:
“The final quarter of the year is often a more subdued one when it comes to rental market demand, with many tenants having already made their move early in the year, or deciding to wait until January arrives to do so. So it’s not surprising to see such a widespread reduction in demand levels on a quarterly basis.
But despite these external factors, tenant activity remains robust across many areas of the market and landlords continue to benefit from high demand for their rental properties. This demand has, of course, been intensified by the ongoing imbalance between the sheer number of tenants within the market versus the level of rental market stock available.”
Data tables
