Chichester has been identified as the UK’s most competitive rental market, according to research from Pepper Money that analysed 42 locations across multiple demand indicators.
The West Sussex city recorded 659 rental property searches per 10,000 people, nearly double the figure for Exeter, which ranked second for search activity. Average rents in Chichester stand at just over £1,200 per month, with three-bedroom properties attracting particularly strong interest.
The analysis assessed locations using metrics including search activity, rental inflation, available stock levels and letting speeds to compile an overall competitiveness index.
Regional variations
Bath and North East Somerset ranked second overall, driven by high search volumes and annual rental growth of 9.7% for one- and two-bedroom properties. Typical monthly rents in the area reach approximately £1,550.
York placed third, with rental growth of around 6%, slightly above the national average. The top rankings were dominated by southern and commuter-belt markets, including Oxford, Exeter, Chelmsford and Winchester, where rental supply remains constrained.
The research comes as property listings rise across England, though rental stock appears to remain tight in key locations.
Weakest markets
Salford ranked lowest in the index, with 204 available rental properties per 10,000 people – more than four times the study average. Peterborough and Leeds also featured among the weakest markets, showing lower search demand and longer letting times.
Semi-detached homes and three-bedroom properties are letting within an average of 122 days and 132 days respectively, according to the data.
Paul Adams, sales director at Pepper Money, said: “Properties such as semi-detached homes and 3-bedroom homes are on the market for just 122 days and 132 days, respectively. This suggests that renters are moving fast to secure their homes in an extremely competitive market.”
Adams noted that landlords who accommodate tenant preferences for longer tenancies and additional space may have advantages in securing tenants. The findings reflect continued pressure in the UK rental market, which has seen sustained demand growth alongside recent shifts in mortgage rates affecting both landlord financing and potential first-time buyers remaining in the rental sector.
Investor implications
The geographic concentration of high-demand markets in southern England and university cities suggests opportunities for buy-to-let investors willing to accept higher entry costs in exchange for shorter void periods and stronger rental growth prospects. However, markets with oversupply, such as Salford, may present challenges for landlords seeking stable occupancy rates.
