England's hottest rental spots for tenant demand (2024)

FAQs

England's hottest rental spots for tenant demand? ›

Cornwall has also seen the largest quarterly uplift in demand, with 26% more rental properties let in Q1 versus Q4, 2022. Rutland is home to the second highest quarterly increase, with rental demand up by 15% in Q1 of this year, followed by Bristol (+12%), East Sussex (+11%) and Greater Manchester (+9%).

Outer London boroughs as well as parts of Greater Manchester and the West Midlands recorded the largest increases in renters compared with homeowners. Watford, just outside London, had the largest increase in the proportion of privately rented homes, from 20% of households to 28%.

The results showed that Coventry is the best city to invest in property because it will return your deposit faster than any other UK city. It would take you as little as 14.8 months to ultimately earn back the average deposit of £19.875 with its exceptional rental yield of 12.2%.

England is experiencing similar shortages, with recent figures showing the number of homes available to rent across the UK has fallen by a third over the past 18 months, while average rents are now £2,200 a year higher than before COVID.

Britain has a severe housing crisis, especially in the most prosperous places in the Greater South East. Across England, the average house costs more than ten times the average salary, vacancy rates are below 1 per cent, and space per person for private renters has dropped substantially in recent decades.

Some of the most sought-after cities in the UK for Airbnb renters are London, Bristol, Brighton, Bath and Manchester. Large towns and cities like these continue to be popular destinations for travellers from around the world. This makes them worthwhile considerations for investors who want to reap the highest profits.

Private rental prices paid by tenants in the UK increased by 4.9% in the 12 months to March 2023, representing the largest annual percentage change since this UK series began in January 2016. The annual growth rate of private rental prices in the UK began to increase in the second half of 2021.

London has the largest number of migrants among all regions of the UK, 3,346,000 – or 37% of the UK's total foreign-born population. In the year ending June 2021, India was – once again – the most common country of birth for migrants (896,000) in the UK.

California had the most renting households with 5.73 million, or 13.6 percent of the nation's 42 million rental homes. Tenants in California make up 44 percent of households in the state, the third-largest share of renters behind. D.C., at 58 percent, and New York at 45 percent.

Where is the best place to invest $1,000 in UK? ›

There is no hard and fast rule as to what a good rental yield is, as your return will depend on the location of your property as well as your expenditures. As a very general rule to give you a rough idea of what to expect, a rental yield of 7% is considered a very good yield for a buy-to-let property.

Demand for rented homes is being driven by the strength of the labour market and is now being compounded by higher mortgage rates, which are making it harder to buy a home and keeping more people in the rental market for longer. Low supply and rising demand pushes rents higher as people compete for homes.

Rising rents are the cause of a lack of landlords and rental properties. Who's to blame and how can this be fixed? In 2021, I wrote an article explaining property price rises during the pandemic. To most observers, it was government interventions, such as the COVID stamp duty “holidays”, that caused the rise in prices.

Rental demand accelerates from mid 2021

Demand for rented homes remains 10% higher than this time last year. Rents will continue to rise ahead of incomes unless we see a sustained increase in rental supply or a material weakening in demand, both of which appear unlikely at this stage.

Terraced houses are a row of uniform houses built in a line, with each property being joined to the next one. This type of property is one of the most common types in the UK. Terraced houses save a lot of space and are popular in cities and towns with a high population density.

Year-on-year, prices in May were 3.4% down on the same month in 2022. April showed a 2.7% annual decline. Nationwide says the average price of a UK property now stands at £260,736.

According to data shared by Mashvisor, one of the top Airbnb host calculators, Nashville in Indiana is one of the US cities that offer the highest short-term rental cash on cash returns. Hosts can expect a monthly short-term rental income of about $5,000, with daily rates averaging at $260.

Is Airbnb profitable in England? ›

Airbnb in the UK can certainly generate a whopping profit. In fact, Airbnb News recently confirmed that a typical host can earn over £6,000 in the UK. Since there's rising inflation, more than a third of Airbnb hosts rely on hosting to afford the increasing cost of living.

The country with the most Airbnb demand is the United States, with 99.5 million nights booked in 2021. They also had an increase of about 33 million nights booked from 2020 to 2021. This was a significant increase in demand compared with every other country on the list.

Property prices have been increasing in recent years, with many landlords selling their properties in order to take advantage of these high prices. This trend has been particularly pronounced in London and other major cities, where property prices have been rising at a faster pace than in other parts of the country.

Like every market, the property market is driven by the laws of supply and demand, and since the pandemic, the backlog of potential renters has yet to level out with the UK's rental supply.

Rental housing is of great importance in the UK, with a larger share of the population renting instead of owning their homes compared to other European countries. Out of approximately 23.5 million households, over one third were private or social renters.

The largest single local cluster of Americans in the UK recorded by the 2001 UK Census was in Mildenhall in North-West Suffolk—the site of RAF Mildenhall and nearby RAF Lakenheath. This is because of the legacy of the Cold War and NATO cooperation. 17.28% of Mildenhall's population were born in the United States.

Cambridge is one of the most American cities in Britain with 2,284 people living in the city born in the United States, according to the last Census in 2011. This figure was 1.8 per cent of the population, or one in 54 people in the city.

It's estimated that around 200,000 US expats are currently living in the UK. American citizens move to the UK for many reasons, most commonly to join a partner or work.

Single-family homes (SFHs) are the most common type of rental property that you can invest in. Obviously, this is a type of property that you can rent out to a single family.

What is rented out the most? ›

Currently, the best places to invest in the UK for rental yields in 2023 are Liverpool, Manchester, Glasgow and Nottingham, which show average rental returns of over 7.37%. Don't skip these cities if you're looking for the best places to buy rental property in the UK.

In the UK, there are no limitations on foreigners purchasing a property. In the UK, non-citizens and foreigners can also obtain a mortgage. Those who have been in the UK for less than two years and are unemployed, on the other hand, may have to meet more stringent requirements and pay a bigger deposit.

2% Rule. The 2% rule is the same as the 1% rule – it just uses a different number. The 2% rule states that the monthly rent for an investment property should be equal to or no less than 2% of the purchase price. Here's an example of the 2% rule for a home with the purchase price of $150,000: $150,000 x 0.02 = $3,000.

Average monthly rents hit £2,500 in London and £1,190 for rest of UK.

They earn £15,000 per year

For the majority of landlords, rental income accounts for two fifths (42%) of their total gross income. Just over one quarter (26%) of landlords report a gross rental income of between £20,000 and £49,999, while 13% report receiving £50,000 or more.

Is the UK rental market strong? ›

While demand has increased, the number of privately rented homes remains largely static. In 2021, there were 5.5m private rented homes in Great Britain - slightly more than the 5.4m total in 2016.

2021–2022 Rent change (%)

Three of the states with the largest increases in rent are in the South, with one in the Northeast and one in the Midwest.

Rental yields can be impacted by a wide variety of different things and as such, no one yield is the same. As a whole, the average UK rental yield sits at 3.63%, so anything over that amount can be considered a high rental yield area.

The most expensive rental market in the US remains to be New York. The average monthly rent for a one-bedroom is roughly $3,260. This is about a $500 decrease from 2021, however as demand continues to increase prices are likely to follow.

Put simply the formula to work from is Annual Rent divided by Purchase Price multiplied by 100 = ROI %. Generally, a 5-8% Return on Investment is desirable with most clients looking for a minimum of a 5% return. See our Landlord Guides & Letting Service Options for full details on our Lettings Services available.

Grainger, the Newcastle company that is active in Build To Rent and claims to be Britain's biggest landlord, has enjoyed a bumper start to 2023.

In conclusion, the shortage of rental properties available to let in the UK is caused by a combination of factors, including high demand, lack of incentives for landlords, restrictions on property development, short-term lets, and the COVID-19 pandemic.

The most expensive states in the U.S. are Massachusetts ($2,632), New York ($2,552) and California ($2,506).

The study analyzed the U.S. Census Bureau housing data of more than 300 cities with a population of 100,000 or more and conducted a survey of over 1,000 people from around the country in November. Newark, New Jersey, has the most, with more than 79% of residents renting.

Are rents falling in the US? ›

Why rent prices are falling. The biggest factor in recent rent price declines is a glut of new rental units in 2023, “the largest in 50 years,” says Thomas LaSalvia, director of economic research at Moody's Analytics. Rental unit vacancies have increased slightly as well, he says.