Wrexham, newly minted as a city, has outpaced all other regions in the UK to become the busiest rental market this year. Landlords here are witnessing a staggering average of 56 enquiries per property, marking a change in the rental landscape. This surge in interest is eight times the average rate of enquiries per available property, as reported by Rightmove.

Not far behind, Redbridge in London is experiencing an average of 49 enquiries per rental property. Similarly, both Tameside and Stockport in Greater Manchester are notching up an average of 48 enquiries for each rental home in 2023.

What is an Enquiry?

An enquiry in this context refers to a potential tenant contacting a letting agent by phone or email, expressing interest in viewing a rental property. Rightmove’s analysis, spanning 360 local authorities across the UK, sheds light on this trend.

The Reality for Renters Nationwide

The UK rental market is currently characterised by a significant imbalance: too many tenants and too few available rental homes. This has led to more than a tripling in the number of enquiries per property, from six in 2019 to twenty in 2023. Consequently, rents have soared due to this intense competition.

Between November 2020 and November this year, the average UK rent per property rose by over 31%, from £974 to £1,279 monthly, according to the Homelet Rental Index.

Diverse Rental Hotspots Across the UK

While London areas traditionally dominate the rental market, Rightmove’s data indicates that intense competition now exists throughout the UK. Factors contributing to this include increased demand from renters, landlords selling properties, or both.

Case Study: Wrexham

In Wrexham, a significant number of landlords have sold their properties in recent years. This, combined with first-time buyers delaying their purchases and current renters avoiding moves to prevent rent hikes, has fueled the rental frenzy.

Voices from the Ground

• Vaughan Schofield from Belvoir letting agents in Wrexham notes the dramatic surge in enquiries, especially for well-located three-bedroom homes.
• Karen Evans from Monopoly Buy Sell Rent describes the Wrexham market as ‘crazy,’ with high demand and resulting increased rental prices.

Other Competitive Markets in the UK

Aside from the aforementioned areas, Glasgow City in Scotland and Thurrock in Essex are also facing stiff competition, with each rental property receiving an average of 47 enquiries.

Rent Increases in the Hotspots

Unsurprisingly, these hotspots have seen significant rent increases:

• In Wrexham, the average rent has risen by 35% since 2019.
• Tameside and Stockport have seen jumps of 60% and 47%, respectively.
• Glasgow City’s rents have increased by 44%.

Will the Rental Market Improve in 2024?

There is a glimmer of hope for an improved balance between supply and demand next year. The availability of rental properties is up by 11% compared to last year, and the number of renters seeking homes has dropped by 12%. However, the market is still 42% more active than in 2019, with 28% fewer available properties, suggesting a gradual return to normalcy.

Industry Insights

• Tim Bannister from Rightmove speaks of a slow but steady improvement in the market.
• Rent increases are expected, but at a slower pace, with Rightmove predicting a 5% rise outside London and 3% within it in 2024.

Final Thoughts: Wrexham’s Rental Market Outlook

Despite the challenges, there are signs of stabilisation in Wrexham:

• Some landlords are beginning to lower rents.
• The supply of rental properties is improving, but the balance is yet to normalise.