Good news for landlords – the latest figures show that the demand for rental properties is starting to pick up!
Rental demand is on the rise, especially in the south
The number of tenants looking for homes has increased by 1.5% since the start of the year, according to research by Zero Deposit. This means that a third of all rental properties listed in England had a tenant secured by the end of June.
While the figures are still slightly down on last year, the trend is definitely positive.
Herefordshire leads the way
Herefordshire saw the biggest jump in demand, with an impressive 11.9% increase compared to the first quarter of the year. This was followed by the City of London (8.4%), Northumberland (7.3%), the West Midlands (7.2%), and Cumbria (6%).
Hotspots for landlords
If you’re looking for a good investment, then the south coast is where you want to be. West Sussex has the highest demand, with 57.2% of rental properties already let.
Somerset (53.7%), Suffolk (53.4%), Dorset (53%), and Cornwall (49.9%) are also seeing strong demand.
Nottingham struggles
On the other hand, Nottingham is facing a tougher time. Only 18.5% of rental properties have been let, making it the area with the lowest demand in the country.
Is this a sign of things to come?
Sam Reynolds, CEO of Zero Deposit, believes that this trend will continue, especially in the popular south coast areas. He says, “Demand is particularly strong across a number of south coast hotspots and as we enter further into the summer months, this is likely to remain the case.”
Affordability is still a major factor
However, Reynolds also acknowledges that the current economic climate is making it tough for some people to rent. He said, “Demand for rental properties across the nation is still yet to return to the same levels seen last year and it’s clear that the ongoing issue of affordability is continuing to restrict the market.”
Landlords need to be flexible
Reynolds believes that landlords need to be flexible and offer alternative options to attract tenants. He said, “We’re seeing record interest in our product from letting agents and landlords looking to increase their pool of tenants and reduce the time to let. In doing so, letting agents in low demand areas, in particular, are finding that they are able to boost rental demand levels.”
The takeaway for landlords:
- The rental market is starting to heat up, especially in the south.
- It’s important to be flexible and offer alternative options to attract tenants.
- The affordability issue is likely to continue impacting the market, but demand is slowly improving.