Renters are leaving expensive city centers and moving further afield, a new study reveals.
They are moving in a bid to find cheaper accommodation or get more for their money, as the average asking rent in the UK rose by 11% last year.
Rightmove findings revealed that 42% of renters are now looking to move out of the city they currently live in. The remaining 58% seek to stay put.
That’s up from 37% who were looking to leave last year and 28% before the pandemic in February 2020.
Renters are leaving expensive city centers and moving further afield, says Rightmove
| City | Proportion of tenants seeking to leave the city February 2023 | Proportion of tenants seeking to leave the city February 2022 | Proportion of tenants seeking to leave the city February 2020 |
|---|---|---|---|
| birmingham | 49% | 45% | 38% |
| Bristol | 45% | 41% | 31% |
| Edinburgh | 38% | 35% | 23% |
| Glasgow | 48% | 44% | 32% |
| Leeds | 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 largest increase in the proportion of tenants looking outside the city compared to a year ago, followed by Sheffield and Manchester.
Rightmove attributed the increase to rents rising at a record pace in recent years and fewer properties available to move into.
Average asking rents in Britain are up 11% from the same period last year and 12% on average across ten major city centres.
Edinburgh city center saw the biggest increase in average asking rents over last year, up 19%, followed by Inner London, up 18%, and Manchester city centre, up 14%.
Rightmove explained that tenant demand for securing rental property has increased rapidly.
Competition for a downtown rental home has more than doubled from three years ago and is up 125%.
However, good news for tenants is that competition among them is easing – albeit slightly from last year’s record highs.
Tenant demand for every rental unit available in Britain has fallen by 4% compared to last year, and the number of units available to rent has increased by 8%
Costing more: Average asking rents across Britain are up 11% on the same period last year, it has been revealed
| Downtown | Average asking rent per calendar month | Average growth in asking rents compared to February 2022 |
|---|---|---|
| February 23 | ||
| Birmingham city center | £1,116 | 11% |
| Bristol City Center | £1,452 | 13% |
| Edinburgh city center | £1,511 | 19% |
| Glasgow city center | £1,181 | 7% |
| Leeds City Center | £1,067 | 13% |
| Liverpool city center | £948 | 2% |
| inner london | £3,308 | 18% |
| Manchester City Center | £1,409 | 14% |
| Nottingham city center | £1,114 | ten% |
| Sheffield city center | £888 | 9% |
| Source: Rightmove |
Renters are also looking for properties in a wider area than before the pandemic. The average distribution of areas a tenant considers when moving has almost doubled, up 87% since February 2020 to 122 km2, as tenants widen their net to find accommodation.
Rightmove went on to suggest that the impact of financial uncertainty and the rising cost of living is reflected in how renters search for their next home.
In total, 35% of renters end their search with a property cheaper than the first one for which they contacted an agent, compared to 31% three years ago.
However, for those who can afford it, Rightmove also claimed that more renters are also ending their search with a more expensive property than the first one they contacted an agent for, rising from 34% three years ago to 42% Today.
Renters are looking in a wider range of areas than before the pandemic
Rightmove’s Tim Bannister said: “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 are seeing a greater proportion of potential buyers looking for a home in the city where they live, but the opposite trend is for renters who may find they have been out of town or have decided to move further to reduce their overall bills.
Tenants are now looking to rent what they can afford, rather than waiting for a property in the right location
“Good news for tenants is that the competition with other tenants and the pressure on available rental accommodation seems to be easing. However, with the still-fast pace of the rental market, it’s likely to be a difficult experience for many looking to secure a home that meets their needs and budget.
Sarah Bush, of Cheffins rental agents, said: “Availability in city centers is low and these locations still command premiums. However, as rental levels continue to rise, we are seeing tenants now looking to rent what they can afford, rather than waiting for a property in the right location.
“In busy areas like Cambridge, the lack of available properties has driven prices up and this is coupled with demand from movers or those only coming to the city for a short time for employment reasons.
“It is the tenants who now have to compromise with a village or a rural area. Likewise, families who need to rent three or four bedroom properties often have to look to village properties just to get the space they need at an affordable level.
