Uncovering the UK’s Busiest Rental Market: What Landlords Should Know

Rightmove’s latest Demand Tracker reveals that Wrexham is currently the UK’s hottest rental market, with overwhelming tenant demand. Based on millions of data points from over 250 local authorities, the figures show that Wrexham’s rental market is busier than any other area in Great Britain.

Tenant Demand Soars in Wrexham

On average, letting agents in Wrexham are receiving an astonishing 54 enquiries for every rental property listed. This far exceeds the national average of 19 enquiries per property, highlighting the significant imbalance between supply and demand in this local market.

Other Hot Markets: Glasgow and Bristol

Wrexham isn’t the only rental hotspot. Glasgow comes in second, with an average of 52 enquiries per available rental home, while Bristol follows closely behind with 51. These cities continue to see intense competition among prospective tenants, reflecting broader trends in the UK rental market.

Rents Climb to Record Highs Outside of London

Outside of London, advertised rental prices have reached an all-time high. The average rent is now £1,349 per calendar month, representing a 5% increase compared to last year. While rent growth has slowed compared to the peak 12% increase seen in 2022, it’s still a significant rise, marking the slowest pace of growth since 2021.

This 5% rise is in line with Rightmove’s forecast for rental market growth this year, indicating a period of more controlled rent increases after a period of rapid growth.

Improvements in Supply and Demand Imbalance

Despite the high demand, the overall imbalance between supply and demand in the rental market has shown some improvement in 2023. The number of tenants looking for homes has dropped by 16% compared to last year, while the availability of rental properties has improved by 8%.

However, the rental market still faces supply constraints. While tenant demand remains 17% higher than in 2019, the availability of rental properties is 32% below pre-pandemic levels. Without a continued increase in supply, there’s a risk that the improvements in market balance could be reversed.

Landlords Selling Up: A Growing Trend

Rightmove’s report also highlights an increasing trend of former rental homes entering the sales market, suggesting that more landlords are selling their properties. This shift may be driven by high mortgage rates, potential changes to capital gains tax, and rising costs for landlords, prompting many to exit the rental market.

Expert Insights from Rightmove

Tim Bannister, Rightmove’s property expert, notes that while the rental market has cooled slightly from last year’s extreme conditions, many local markets are still feeling intense pressure. "In some areas, to receive over 50 enquiries per available rental property is an astonishing figure," Bannister says. "This shows there is still significant work to be done to improve the balance of supply and demand across Great Britain."

Top 20 Busiest Rental Markets in the UK

Here are the top 20 busiest rental markets in the UK, according to Rightmove’s Demand Tracker:

This updated version presents the same information but is restructured for clarity and flow, offering insights into tenant demand, rent growth, and market trends affecting landlords.