Tenants leave city centres as rents rise 11% says Rightmove
Tenants are leaving expensive city centers and moving further afield, new research shows.
They are taking the step to find a cheaper place to live or to get more for their money, as the average asking rent in the UK has risen by 11 per cent over the past year.
Rightmove’s findings showed that 42 percent of renters now want to move out of the city where they currently live. The other 58 percent want to stay.
It’s up from 37 percent who wanted to leave last year and up from 28 percent before the pandemic in February 2020.
Tenants are leaving expensive city centers and moving further away, according to Rightmove
| City | Percentage of tenants planning to leave the city in February 2023 | Percentage of tenants planning to leave the city in February 2022 | Percentage of tenants planning to leave the city in February 2020 |
|---|---|---|---|
| Birmingham | 49% | 45% | 38% |
| Bristol | 45% | 41% | 31% |
| Edinburgh | 38% | 35% | 23% |
| Glasgow | 48% | 44% | 32% |
| To lead | 49% | 47% | 36% |
| Liverpool | 35% | 34% | 26% |
| London | 38% | 31% | 24% |
| Manchester | 54% | 49% | 39% |
| Nottingham | 48% | 48% | 37% |
| Sheffield | 52% | 47% | 36% |
| Source: Rightmove | |||
London has seen the biggest increase in tenants looking out of town compared to a year ago, followed by Sheffield and Manchester.
Rightmove attributes the increase to rents that have risen at a record pace in recent years and a decrease in the number of homes available to move into.
The average asking rent across Britain is 11 percent higher than at this time last year and an average of 12 percent higher in ten major city centers.
Edinburgh City Center has seen the biggest increase in average rents asked compared to last year, up 19 per cent, followed by Inner London, up 18 per cent, and Manchester city centre, up 14 per cent.
Rightmove explained that demand from tenants to secure a rental property has increased rapidly.
The competition to get a rental in a city center has more than doubled compared to three years ago and is up 125 percent.
Good news for tenants, however, is that competition between them is easing – albeit only slightly compared to last year’s record levels.
Tenant demand for every available rental property across Britain is down 4% compared to last year, and the number of available rentals is up 8%
More costs: Average asking rent across Britain is 11% higher than this time last year, it has been revealed
| City center | Average demand rent per calendar month | Average demand rental growth compared to February 2022 |
|---|---|---|
| February 23 | ||
| Birmingham city centre | £1,116 | 11% |
| Bristol city centre | £1,452 | 13% |
| Edinburgh city center | £1,511 | 19% |
| Glasgow city centre | £1,181 | 7% |
| Leiden city center | £1,067 | 13% |
| Liverpool city centre | £948 | 2% |
| Within London | £3,308 | 18% |
| Center of Manchester | £1,409 | 14% |
| Nottingham city centre | £1,114 | 10% |
| Sheffield city centre | £888 | 9% |
| Source: Rightmove |
Tenants are also looking at properties in a wider area than before the pandemic. The average spread of areas a renter considers when moving has nearly doubled, up 87 percent since February 2020 to 122 square miles, as renters cast their nets wider to find a home.
Rightmove further suggested that the impact of financial uncertainty and the rising cost of living is reflected in how renters are looking for their next home.
In total, 35 percent of renters end their search with a home that is cheaper than the first one they contacted a real estate agent for, up from 31 percent three years ago.
However, for those who can afford it, Rightmove also claimed that more renters end their search with a more expensive property than the first they contacted a realtor for, from 34 percent three years ago to 42 percent today.
Tenants are looking in a wider range of areas than before the pandemic
Tim Bannister of Rightmove: ‘The latest trends in the rental market show how cost pressures and the imbalance between supply and demand are changing the way tenants search for their next home.
“We’re seeing a higher proportion of potential buyers looking for a home in the city they live in, but it’s the opposite trend for renters who find they’re priced out of town or have decided to move further afield to keep their reduce overall bills.
Tenants now just want to rent out what they can afford, rather than looking for a property in the right location
‘The only good news for tenants is that competition with other tenants and the pressure on available rental properties seems to be decreasing. But with the pace of the rental market still going strong, it is likely to be a challenging experience for many looking for a home that fits their needs and budget.”
Sarah Bush, of rental agency Cheffins said: ‘Availability in city centers is low, and these locations always command a premium. But as rent levels continue to rise, we see tenants now simply wanting to rent out what they can afford, rather than looking for a property in the right location.
‘In busy areas such as Cambridge, the lack of available properties has driven up prices and this has been accompanied by demand from job movers or people coming to the city for short periods only for work reasons.
‘These are the tenants who now have to compromise with a village or rural location. Similarly, families needing to rent three or four bedroom homes often have to turn to village homes simply to get the space they need at an affordable level.”
