Are you interested to discover the UK’s most sought-after rental hotspots of 2023? In a fluid rental market, it’s important for property investors to know the locations that are drawing in tenants by the dozens. We’ve delved into the latest data to reveal which towns are witnessing a rental boom, with demand skyrocketing to all-time highs. But which area takes the top spot? Stay tuned as we unveil the rental location champions of 2023!
Wrexham is 2023’s busiest rental market with 56 enquiries per property
Topping the list of UK rental market hotspots is Wrexham in Wales, which has emerged as the leading town for demand for 2023, with an unprecedented average of 56 enquiries per listed available property on one of the UK’s leading property portals, Rightmove. The area has experienced a dramatic surge from just eight enquiries in 2019.
Local letting agents Karen Evans from Monopoly Buy Sell Rent in Wrexham and Vaughan Schofield of Belvoir Wrexham, have witnessed a market in flux. Schofield reported seeing properties in desirable locations receiving up to 100 enquiries while Evans said the agency had to adapt to the intense demand with strategies like group viewing sessions to manage the high volume of enquiries. They attribute the area’s increase in available properties to the conclusion of long-term leases and new developments, along with a return of landlords who had shifted to short-term rentals during the pandemic’s peak.
Not far behind Wrexham is Redbridge in London which generated the second highest amount of enquiries, with an average of 49 enquiries per available rental property. This significant figure, up from 11 in 2019, highlights the area’s enduring appeal and its growing prominence in the Capital’s competitive rental market. Redbridge’s strategic location and vibrant community have made it a top choice for renters, reflecting the broader trends of increasing demand within London.
In third place, Tameside in Greater Manchester proves its popularity with an average of 48 enquiries per listed rental property – a substantial increase from the previous 14 enquiries in 2019. Tameside’s rise is indicative of the wider shifts in the UK rental market, with more tenants seeking value and quality outside the Capital.
Across the nation, Rightmove reports the rental landscape is experiencing a remarkable upswing, with properties receiving an average of 20 enquiries each, a steep increase from the six enquiries per property noted in 2019.
Great Britain’s busiest rental markets
Although this trend highlights the continuing mismatch between demand and supply of rental properties, Rightmove’s research has revealed that post-pandemic adjustments are currently underway with tenant demand decreasing by 12 per cent from the previous year, while the availability of rental properties has risen by 11 per cent. This gradual movement is beginning to rebalance the long-skewed market with the researchers predicting the balance between supply and demand will improve next year.
Furthermore, there are early indications that the average rise in newly advertised rents will be lower in 2024 than in recent years. Over the past year, newly advertised rents have increased by 10 per cent outside London and by 6 per cent in the Capital compared to the 10 per cent and 6 per cent increase respectively in 2023. The widely anticipated lowering interest rates may also encourage renters to buy thereby contributing to this decline in rental demand.
Rightmove’s property expert Tim Bannister, commented: “There are still far more renters looking to move than there are homes available which means we still expect rents to rise on average next year. But these early signs of a better balance of supply and demand means we predict rents will rise by a smaller figure of 5 per cent next year, rather than another year of double-digit rental growth.”
