Revealed - rental demand drops as much as -29%

Estate and lettings agent, Barrows and Forrester, revealed that tenant demand has started to depreciate across the rental market.

The new research is based on The Barrows and Forrester Rental Demand Index. Rental listings across the nation were analysed by, taking an average demand score for each English county based on the number of properties already let as a percentage of all rental listings, and showcasing where demand for rental homes is at its highest. 

Changes to rental demand

After a quarterly drop of -12% between Q3 and Q4 of last year, rental demand across England is at 33.9%.

the City of Bristol experienced a decline of -28.9%, making it the city with the most significant rental demand drop.

Other areas that have seen a major reduction include Nottinghamshire (-21.5%), the City of London (-20%), West Yorkshire (-18.7%), and Greater Manchester (-18.5%). 

The findings also show there were high levels of growth in Some parts of England have, however in the past quarter. Durham increased by 12%, the Isle of Wight has saw a boost by 3.5%, while Shropshire and Essex  rose by 1.9%.

With rental demand at 56.1% West Sussex was labelled as England’s current rental demand. Tailing closely behind are Bedfordshire (54.4%), Essex (54%), Bath & North East Somerset (51.5%), and Dorset (51.5%). 

Managing director of Barrows and Forrester, James Forrester, commented: “Rental demand is down across all but four areas of England and the rising cost of living and surging energy prices will be playing a significant part in this decline.”

“Tenants are fully aware that landlords are seeing their own expenses rise, not least mortgage payments, and are passing these increasing costs to their tenants. As such, renters are choosing to stay put at the moment with tenancy agreements that were signed before the current economic crisis instead of exposing themselves to a market where prices are likely to get higher and higher.”

“As the cost of living crisis eases, whenever that might be, rental demand will certainly increase. But for now, tenants are staying put.”