The Renters Rights Act, coming into force on May 1, will hand 11m UK renters stronger rights and greater security in their homes.
Pepper Money says that while the law reshapes how landlords manage their properties, it also opens new opportunities in the country’s highest-demand rental markets.
Landlord Hotspots: The 10 Cities With Soaring Rental Demand
Pepper Money can reveal the 10 locations where renters are facing fierce competition by analysing search interest in rental properties, stock levels, rent inflation, letting speed, and average rent by property type.
| Rank | Area | Searches per 10,000 | Let Speed – time on market | Property Stock per 10,000 | Price per month | Inflation |
| 1 | Chichester | 659.00 | 208 | 19 | 1,201 | 4.3 |
| 2 | Bath and North East Somerset | 340.00 | 166 | 32 | 1486 | 9.7 |
| 3 | Exeter | 369.00 | 191 | 31 | 1130 | 4.3 |
| 4 | Wolverhampton | 100.00 | 223 | 15 | 820 | 11.8 |
| 5 | Chelmsford | 136.00 | 167 | 18 | 1293 | 9.1 |
| 6 | Newcastle upon Tyne | 26.00 | 190 | 36 | 984 | 15.9 |
| 7 | York | 243.00 | 159 | 17 | 1055 | 6 |
| 8 | St Albans | 183.00 | 167 | 20 | 1608 | 3.8 |
| 9 | Winchester | 328.00 | 180 | 74 | 1294 | 5.3 |
| 10 | London | 27.00 | 212 | 30 | 2156 | 1.5 |
Chichester revealed as the top location for rental demand
The number one place on the index was Chichester, where residents are facing the most significant demand for rental properties, driven by high search interest and average monthly rent.
Search interest for rented homes is at its highest here in comparison to the rest of the UK, with 659 searches per 10,000 people. This is almost double that of Exeter, with 369 searches per 10,000 people, the city with the second-highest search demand.
The West Sussex city also ranked highly for average rental yield, with renters paying around £1,227 per month. According to the study, this is 15% higher than the average monthly cost of a two-bedroom property, which stands at £1,065.
Bath and Exeter rank second and third in the renters index study
In second place was Bath and North East Somerset, driven by strong search interest and rising rental prices. Bath ranked third for search interest, recording 340 searches per 10,000 people, indicating high demand for rental homes.
The area has also experienced significant rental inflation, with average annual increases of 9.7% for one-bedroom and two-bedroom properties. Average rental costs across the area rank seventh overall, at around £1,550 per month. Together, these factors give Bath and North East Somerset second place in the study.
In the UK Rental Index, Exeter ranks third overall. This city has recently hit the news, with 60% of rental properties in Exeter assigned as student accommodation.
The increase in rental demand could be behind the high number of searches for ‘places to rent’ in Exeter, ranking second out of 42 for the highest search interest in rental properties in the index. The city was consistent across the full study, ranking 13th for average rental costs and below average for rental stock available, with 31 per 10,000 people, 6 less than the UK average.
Salford and Leeds fall to the bottom of the rental demand index
Salford ranked lowest in Pepper Money’s study. The Greater Manchester area recorded the highest level of properties available on the market, with 204 properties per 10,000 people, which is 451% higher than the study average of 37. Salford also ranked towards the bottom for time on the market, with properties taking an average of 240 days on the market, which is 67 days longer than the UK average.
Leeds joins Salford at the bottom of the index. The West Yorkshire city was ranked third behind Canterbury and Salford for available houses on the market, with 120 per 10,000 people. The city also featured in the top 20 areas with the longest time on the market, with 177 days, 5 days over the average time for houses to sell.
| Lowest ranking places | Area | Searches per 10,000 | Let Speed – time on market | Property Stock per 10,000 | Price per month | Inflation |
| 1 | Salford | 165.00 | 240 | 204 | 1077 | 6.1 |
| 2 | Leeds | 123.00 | 177 | 120 | 954 | 3.1 |
| 3 | Newport | 111.00 | 0 | 5 | 854 | 4.4 |
| 4 | Peterborough | 125.00 | 179 | 34 | 0 | 0 |
| 5. | Derby | 163.00 | 146 | 51 | 761 | 4.2 |
Paul Adams, Sales Director at Pepper Money, says: “We can see that rent is continuing to grow in demand in the UK. Our research highlights strong levels of search interest across 42 locations, alongside very short letting periods.
“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, and it’s something that landlords can see and work with renters to secure desired tenants.
“As this shift in renting continues, there is an opportunity for renters and landlords to work more closely together. There is a greater demand for stability, reliability and more trust on each side. Landlords who understand the evolving needs of their renters, such as longer tenancies and, in some cases, more space, are at a greater chance of succeeding and securing those longed-for tenants in this competitive market.”
Other Key Stats:
- Plymouth sees the quickest turnover of rental properties, being on the market for an average of 117 days.
- Semi-detached homes are the most sought-after, spending just 122 days on the market across the 42 areas analysed.
- London remains the most expensive place to rent, with tenants paying an average of £2,247 per month. London renters are paying 31% more than Oxford renters, who ranked second.
- The south has fewer homes available per renter, with Southend-on-Sea offering just six properties per 10,000 people.
