Wakefield, Coventry, Brighton, Nottingham and Greater London top the list of hotspots where tenants new to the area account for the largest number of new tenancies signed, according to new data from HomeLet.
HomeLet’s Rental Index Regional Variance Figures found that, in Wakefield and Coventry, more than a quarter of tenancies signed over the last year were taken on by people moving to these cities.
Since the recession started in 2008, tenant movement into Greater London has increased, possibly driven by the higher number of employment opportunities available in the capital. 18% of new tenancies in the capital in the last 12 months were taken on by people moving from other regions, up 7% from June 2008.
In London the average rent on a new tenancy currently stands at £1,515 per month, 10.1% higher than 12 months ago. The average rent for new tenancies across the UK in the three months to June 2015 was £965 per month, with rises witnessed in every region of the UK.
Additionally, the index looked at the UK cities in which tenants are most likely to stay for the long-term. This is done by analysing the number of tenancies being signed by people who have previously lived elsewhere in the same city. Belfast, Birmingham and Cardiff are popular must-stay locations. So much so, 95% of tenancies in each of these locations were taken on by someone already resident in the area.
“The HomeLet Rental Index paints a fascinating picture: it reveals several hotspots around the country that are attracting and retaining tenants,” Martin Totty, chief executive officer of HomeLet’s parent company Barbon Insurance Group, commented.
“For example, with its proximity to the burgeoning local economy of Leeds, Wakefield is an attractive and affordable location for tenants to move to. Meanwhile, cities such as Birmingham and Bristol appear to be ‘must stay’ locations, with tenants increasingly choosing to settle and stay in these cities, and continuing to choose to privately rent property in order to do so.”
He added: “While the London rental market continues to be popular, with the capital inevitably drawing in large numbers of people, it’s not the only part of the country attracting incomers, with tenants also choosing cities such as Nottingham, Brighton and Coventry.”