According to research carried out this month, rental demand in urban areas has steadily climbed in all major cities during the third quarter of 2021 as we see a return to office working.
The Barrows and Forrester Rental Demand Index analyses rental listings across the UK, presenting an average demand score for each of the UK’s major cities. By looking at where has the highest number of properties already let it highlights the percentage of all rental listings in the UK.
The analysis presented in the report shows that rental demand averaged 42.9% from July to September (Q3) 2021, an increase of 9.9% compared to April to June (Q2) and 6.8% higher than the same period last year.
Rental demand in Q3
Glasgow has enjoyed the largest quarterly uplift, along with Cardiff, with rental demand rising by an incredible 22.1%. This is followed by Bristol at 21.9% and Edinburgh at 21.5%. There was also a rise in tenant demand by more than 20% from July to September with Cambridge also in the top five at 19.6%.
The cities that make the top 10 in terms of an uplift in demand include Manchester at 14.8%, Newcastle at 11.2%, Southampton at 10.9%, Plymouth at 10.8% and Birmingham at 10.5%. Newport is the only city to have seen a decline in demand in Q3, down -5.2% on the previous quarter.
In terms of an annual uplift in tenant demand, featuring in the top 10 are Cardiff, Cambridge, Edinburgh, Manchester, Bristol, Glasgow, and Birmingham.
Innes Allan says:
We are seeing indicators across Glasgow that the rental market is picking up at an exceptional rate, after a challenging time for both renters and landlords. During the pandemic, many landlords experienced void periods – especially those in the student rental market which is prominent in the West End – and a decrease in rents in order to secure a tenant. We are pleased to see that there are clear signs of recovery not just in Glasgow but other major cities across the UK as people return to more normal working conditions – which has a positive knock on effect on the wider city. We expect this to continue over the coming months as tenants look to find a new home in time for the festive period and the start of 2022″.
As one of West of Scotland’s longest established estate agents, Caledonia Property has helped locals buy, rent, let and sell properties quickly, and with the minimum of hassle. Get in touch with our team on 0333 241 3333 today or send us a message to find out more.