Rental competition in Britain’s most sought-after areas has reached 30 enquiries per property, according to new data from Rightmove, highlighting persistent pressure in specific regional markets despite overall improvements in supply.
Birkenhead and Wallasey, both located on the Wirral in Merseyside, recorded the highest levels of tenant competition, with 30 enquiries per property on average. Typical monthly rents in these areas stand at £874 and £975 respectively.
Carlisle in Cumbria followed closely with 29 enquiries per property and average rents of £913 per month. Glasgow ranked fourth with 28 enquiries per property, while East Kilbride and Prenton each recorded 27 enquiries.
The top 10 rental hotspots also included Kingswood in Bristol, Chorlton Cum Hardy in Manchester, Morecambe, and Salisbury.
National trends show moderation
Across Britain as a whole, rental properties attracted an average of 11 enquiries each during July and August, down from 12 during the same period last year. This marks a significant decline from the peak of 28 enquiries recorded in summer 2022, though it remains above the pre-pandemic average of eight.
Average asking rents nationally currently stand at £1,580 per month, maintaining record levels. The figures come as rental values in prime London have risen 67% amid supply constraints, demonstrating divergent market conditions across different segments.
Colleen Babcock, Rightmove’s Head of Partner Marketing, noted that “July and August are typically the busiest months of the year for the rental market, and our analysis shows that competition remains particularly strong in some parts of Britain.”
She added: “The North West features particularly prominently in our findings, accounting for six of the 10 most competitive locations, while Scotland recorded the highest average level of competition anywhere in Britain.”
Regional affordability drives demand
Kim Ledbury, ARLA Propertymark President, attributed the shift towards more affordable regions to rising housing costs and increased flexibility in working arrangements.
“Considering rental costs have increased substantially over the last decade, many tenants are now looking at areas of greater affordability than ever before, particularly as advancing technology makes it easier for people to work remotely or in hybrid locations,” Ledbury said.
She noted that renting has become increasingly popular due to the flexibility it offers and the challenges many face in saving deposits to purchase property.
Market implications
The data suggests that while national rental market pressures have eased from their 2022 peak, specific regional markets continue to experience significant tenant demand. The concentration of hotspots in the North West and Scotland indicates that affordability considerations are reshaping rental demand patterns, with implications for investors considering regional buy-to-let opportunities.
For landlords and investors, the divergence between high-competition regional markets and the national average presents both opportunities and challenges in portfolio strategy and pricing decisions.
