Wrexham has been named as the busiest rental market of 2023, with landlords in the area typically receiving 56 enquiries per property.
Wrexham – which became a city last year – has recorded eight times more enquiries on average for each available property, according to Rightmove.
Rightmove’s data also revealed Redbridge in London to be the second busiest market with an average of 49 enquiries per available rental property.
Both Tameside and Stockport in Greater Manchester come in third with an average of 48 enquiries per rental home in 2023.
Wrexham in Wales is this year’s busiest rental location, with available rental properties in the area receiving 56 enquiries on average in 2023, up from eight enquiries back in 2019
An enquiry is measured by a prospective tenant phoning or emailing a letting agent to request to view a property to rent with analysis was carried out across 360 local authorities of the UK by Rightmove.
Across the country, renters face the harsh reality of there being too many tenants and too few homes available to let.
Rightmove says the number of enquiries each property is receiving from would-be tenants has more than tripled, from six per property in 2019 to 20 per property in 2023.
Unsurprisingly, rents have become more expensive as a result of this fierce competition.
Between November 2020 and November this year, the average UK rent per property rose by more than 31 per cent from £974 a month to £1,279, according to the Homelet Rental Index.
The rental hotspots
Typically, London areas are the most competitive rental markets in the country.
However, Rightmove’s data revealed there are now fiercely busy rental markets all over the UK.
The competition in these local markets can be exacerbated by either more renters wanting to live there or landlords selling up, or a combination both.
For example, in Wrexham, letting agents are saying that large numbers of landlords have sold up in recent years.
Rising rents: The average UK rent per property rose by more than 31 per cent from £974 a month to £1,279, according to Homelet Rental Index
Vaughan Schofield, owner at Belvoir letting agents in Wrexham, said: ‘On the supply side, we saw a wave of landlords sell up during the heights of the pandemic, taking a significant chunk of the rental stock out of Wrexham.
‘Additionally, we’re seeing more would-be first-time buyers stay put for longer and less movement amongst renters who are looking to avoid a rent increase.
‘The average enquiry numbers don’t surprise me. For a three-bed detached or semi-detached house on a good street in Wrexham, we could receive 100 enquiries for the property.’
Karen Evans, operations director at Monopoly Buy Sell Rent in Wrexham said it has been a ‘crazy year’ for the Wrexham rental market.
She added: ‘Like most areas of Great Britain there just hasn’t been enough properties to meet the demand from tenants and this has resulted in higher rental prices.
‘Due to the sheer volume of enquiries we’ve been receiving for rental properties, we’ve had to reduce viewing times and host group viewing sessions.
‘For cheaper properties up to around £900 per month in rent, we’re still seeing very high volumes of interest, with many working in the area still really needing a place to rent.’
Aside from Wrexham, Redbridge, Tameside and Stockport, there are plenty of other towns and cities where renters face staggering competition over available properties.
In Scotland, in Glasgow City there are 47 rental enquiries for each available property on average.
In Thurrock in Essex, which borders the river Thames, each rental home on average is receiving 47 enquiries.
Tough to be a renter here: The UK’s busiest rental markets: All areas in the UK are recording many more rental enquiries per available property then they were in 2019
What has happened to the rents in these hotspots?
Unsurprisingly, given the demand and supply imbalance in these rental hotspots, rental prices have ballooned in all these areas.
In Wrexham, the average advertised rent has risen by 35 per cent since 2019, from £711 per month to £960 a month, according to Rightmove’s data.
Some locations have seen even bigger jumps in asking rents, however.
In Tameside, the average advertised rental property has risen by a staggering 60 per cent since 2019, rising from £661 a month to £1,060 a month.
Prices have also surged in Stockport with rental properties demanding £1,389 a month on average, up 47 per cent on 2019 when average prices were £945 a month.
Similarly Glasgow City has seen asking rents jump by 44 per cent since 2019, from £723 a month to £1,038 a month.
| Local Authority | Average advertised rent 2019 | Average advertised rent 2023 | % Change |
|---|---|---|---|
| Wrexham | £711 | £960 | 35% |
| Redbridge | £1,567 | £2,051 | 31% |
| Tameside | £661 | £1,060 | 60% |
| Stockport | £945 | £1,389 | 47% |
| Glasgow City | £723 | £1,038 | 44% |
| Thurrock | £1,158 | £1,550 | 34% |
| Salford | £854 | £1,205 | 41% |
| Blackpool | £606 | £795 | 31% |
| Gravesham | £1,111 | £1,570 | 41% |
| Waltham Forest | £1,588 | £2,097 | 32% |
Will the situation improve for renters in 2024?
There are signs that the balance between supply and demand will improve next year, according to Rightmove.
The number of properties available to rent is now 11 per cent higher than this time last year, while the number of renters looking for a home and sending enquiries to estate agents is 12 per cent lower than at this time in 2022.
While the gap between supply and demand is improving, tenant demand is still 42 per cent higher than at this time in 2019, and the number of available rental properties is 28 per cent lower.
This suggests it will take more time for the balance between supply and demand to reach the more normal market levels of 2019.
Too few homes for too many tenants: While the gap between supply and demand is improving, tenant demand is still 42 per cent higher than at this time in 2019
Rightmove’s property expert Tim Bannister said: ‘The balance between supply and demand has been slowly improving this year, and while it will likely be a long time yet before we reach the more normal market levels of 2019, the early signs of improvement are promising heading into 2024.
‘The increase in available homes for rents we’re seeing is likely to be a combination of some longer-term leases agreed during the pandemic years coming to an end, some new developments across the country being converted into rental homes, some landlords choosing to sell up, and also other landlords now returning who temporarily switched to the short-let market.’
Will rents continue to increase?
Tenants can expect further rent hikes next year, but they could get some respite from the double digit annual increases that have been recorded since the pandemic began.
Rightmove is forecasting a 5 per cent increase by the end of 2024 outside of London, with a 3 per cent increase in London.
Meanwhile, the estate agent Savills forecasts average UK rents to rise 6 per cent in 2024 and the estate agent, Chestertons is predicting a 5 per cent increase in rents across the UK next year.
Five-year rent forecast: Savills predicts that rents will rise 6% next year before it hits somewhat of an affordability ceiling in 2025
‘There are still far more renters looking to move than there are homes available which means we still expect rents to rise on average next year,’ adds Rightmove’s Bannister.
‘But these early signs of a better balance of supply and demand means we predict rents will rise by a smaller figure of 5 per cent next year, rather than another year of double-digit rental growth.’
As for the UK’s hottest rental market right now, tenants in Wrexham may some have reason to cheer too.
‘We’re seeing some early signs of activity calming down heading into next year,’ says Karen Evans of Monopoly Buy Sell Rent in Wrexham.
‘We’ve recently had some landlords with higher-end properties reduce their advertised rent for the first time in a while, and tenants are approaching the ceiling of what they can afford to pay.
‘There are signs of supply improving, but there are still far more tenants than homes available and it will take a while for the balance to get back to normal.’
Vaughan Schofield of Belvoir in Wrexham adds: ‘Over the course of the year we’ve seen more landlords come back into the market, but it’s not been enough yet to replace the homes that left during the pandemic, and it’s likely to be another busy year for the area in 2024.’
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