Looking for your next buy-to-let investment? New data from Rightmove reveals that Wrexham is the UK’s hottest rental market right now. Landlords in the Welsh town are raking it in, with an average of 54 enquiries per property! That’s right, for every rental property that hits the market in Wrexham, letting agents are swamped with 54 eager potential tenants!
This incredible demand puts Wrexham far ahead of the national average, with the rest of Great Britain only seeing 19 enquiries per rental property.
Where are the other rental hotspots?
Wrexham isn’t the only place where demand is through the roof. Glasgow and Bristol are hot on its heels, with 52 and 51 enquiries per property respectively.
Other areas where you’ll find it easy to find tenants include:
- Plymouth (50 enquiries)
- Wirral (47 enquiries)
- Salford (47 enquiries)
- Stockport (46 enquiries)
But what about rents? Well, outside of London, average advertised rents have hit a record high of £1,349 per month. That’s a 5% jump compared to this time last year. While this growth is slower than the 12% peak we saw in 2022, it’s still good news for landlords, with Rightmove predicting continued rent increases throughout the year.
Is the market becoming more balanced?
There are some positive signs for the balance between supply and demand. Rightmove’s data shows that the gap is closing, with:
- 16% fewer tenants hunting for homes compared to last year
- 8% more available properties on the market
However, it’s not all plain sailing. The rental market still faces a challenging imbalance:
- There are 17% more tenants searching than before the pandemic in 2019
- The number of available rental properties is down by a worrying 32% compared to the same period in 2019
What’s driving landlords to sell up?
While high demand is good news, a recent Rightmove report reveals a worrying trend: a record number of former rental properties are popping up on the sales market. Why are landlords selling up?
Several factors are at play:
- High mortgage rates are squeezing profits
- The threat of an increase in capital gains tax is looming large
- Rising landlord costs, from maintenance to energy efficiency upgrades, are eating into returns
What do the experts say?
Tim Bannister from Rightmove explains: “While the rental market has eased compared to last year, many areas still haven’t felt the effects of these improvements. Prospective tenants are likely facing a very hot and competitive market.”
He adds, “Receiving over 50 enquiries per rental property in some areas is astonishing and shows there’s still much work to be done to balance supply and demand.”
Angharad Trueman, ARLA Propertymark president, points out a shift in tenant priorities: “Since the pandemic, there’s been a change in how people choose where to live. Working from home means people can prioritise lifestyle factors like access to the countryside or bigger properties.”
So, what does this mean for you? The rental market remains competitive, but with high demand and rising rents, there are still excellent opportunities for savvy landlords and property investors. Now could be the perfect time to expand your portfolio in rental hotspots like Wrexham, Glasgow, and Bristol.