- Tenants have shifted their home searches to the countryside and suburbs
- Higher demand has translated into increased rental prices in these areas.
- Rental prices increased by 11% in rural areas compared to 2% in urban areas
- Only 3% of rental properties on Rightmove are in rural locations
Tenants have shifted their appetite for a new home to the countryside and suburbs rather than the city, creating a huge gap in rental demand.
Data from Rightmove shows that out-of-town and suburban areas saw a 11 per cent increase in rental demand, compared to 2 per cent in urban areas.
It compared asking prices for over 300,000 rental homes in February 2020 with August 2021 on its website.
This three bedroom home in Upper Sheringham, Norfolk, can be rented for £1,100 per month through agents at Brown & Co.
London and downtown locations are seeing less demand from tenants than out-of-town areas
The shift follows a trend seen in the homebuyer market, where demand for rural homes soared during the pandemic race for space and remote work.
Rightmove said that in the rental market, the average demand price in suburban areas had reached £1,041 per month, up from £940 in February 2020, an increase of £101.
At the same time, rents in rural areas range from £1,141 per month to £1,264 per month, an increase of £123.
Meanwhile, rental demand prices in urban areas have risen from £25 to £1,347 to £1,372 during the same period.
The demand for more outdoor space among tenants has seen greater competition for rental properties in rural areas and suburbs.
Rightmove said the number of homes available for rent in the suburbs declined by 45 percent compared to pre-pandemic levels. At the same time, in rural areas this figure is less by 61 percent.
It said tenant demand for each rental property in the suburbs grew by 155 per cent compared to pre-pandemic levels and a massive 224 per cent growth in rural locations.
Only 3 percent of rental properties listed on Rightmove are now in rural locations
This two-bedroom home in Mount Ambrose, Cornwall, is available to rent for £70 per month through agent Trelawney
Lettings agent Darren Ellis of Bradley’s Group said: ‘At all of our offices, which cover Somerset, Devon and Cornwall, demand for properties in rural and semi-rural areas has been feverish with multiple applications for almost every property from the start. reached the pitch. of the year
‘As a result, tenants are offering above market prices to secure a property, and landlords can choose the application that best suits their situation.
“Lack of available homes, be it flats or houses, means that landlords are experiencing shorter tenure.
‘While the market cooled very little at the end of the summer, this only reflects a shortage of assets, not demand from tenants, so it is likely that this market will last for months to come in the winter.’
This three-bedroom detached bungalow in Rosalia, Scotland, by agent Galbraith, is to be offered for £750 per month
Rightmove reported that 64 percent of the rental properties listed on its website are now in urban locations, up 48 percent from February 2020.
The proportion of available properties in the suburbs has dropped from 46 per cent to 33 per cent, while in rural areas it has come down from 6 per cent to just 3 per cent.
Competition for rental properties available in urban areas has also increased compared to before the pandemic – though significantly less than in suburban and rural areas – at 82 percent.
The high level of competition for rental homes in rural areas means that the average rental property in a rural location finds a tenant 18 days sooner than before the pandemic.
Suburban properties find a tenant two weeks faster, and urban rentals find a tenant five days faster.
This three-bedroom semi-detached home in Aldercroft, Cumbria, is available to rent for £900 per month through agent Milne Moser
Rightmove’s Tim Bannister said: ‘A notable impact of the pandemic on the rental market has been the change in the distribution of available properties between urban and suburban areas.
‘While the proportion of homes available for rent in urban and suburban areas remained stable in the years leading up to the pandemic, the data shows a significant shift in 2020 as more renters look to the suburbs.
Letting agents report that prices have risen amid fierce competition for rental homes in rural areas.
The desire to relocate and move to a home with more space means that demand has greatly outstripped the supply in these areas and also in rural locations, which in turn is demanding for rent.
‘Now that more people are returning to offices at least part of the week, we would expect to see more demand for urban rentals in the coming months as more people need to be closer to work.
‘However, the changes we have seen during the pandemic mean this change is not going to happen overnight, and it will be interesting to continue to monitor the lasting effects of the pandemic on demand in the rental market. the rest of the year.’