Wrexham, Wales, has emerged as the frontrunner in this year’s dynamic rental market landscape, seizing the spotlight as the busiest rental market of 2023 according to Rightmove, a prominent property portal.
Reports indicate a remarkable surge in rental demand within the city, with an average of 56 inquiries per available property from prospective tenants this year. This figure marks a substantial leap from a mere eight inquiries recorded back in 2019, signalling a significant upturn in rental interest.
The trends extend beyond Wrexham. Across Great Britain, there has been a notable escalation in rental inquiries, averaging around 20 individual inquiries for each available rental property in 2023. This starkly contrasts with the average of six inquiries seen in 2019, showcasing the widening gap between supply and demand in the rental market.
Redbridge in London secures the second spot on Rightmove’s list, boasting an average of 49 inquiries per available rental property, a substantial increase from the 11 inquiries reported in 2019. Tameside in Greater Manchester follows closely in third place, noting an average of 48 inquiries compared to 14 in 2019.
Despite the burgeoning demand, Rightmove suggests a potential improvement in the equilibrium between supply and demand. According to their analysis, the number of properties available for rent has seen an 11% increase compared to the previous year. Simultaneously, the number of prospective renters searching for homes and sending inquiries to estate agents has observed a 12% decline from 2022.
Tim Bannister, Rightmove’s property expert, expressed optimism about this evolving market scenario. He remarked, “The slow but steady improvement in the balance between supply and demand this year presents promising early signs as we head into 2024.” Bannister attributed the rise in available rental homes to several factors, including the conclusion of longer-term leases agreed upon during the pandemic years, the conversion of new developments into rental properties across the country, landlords opting to sell their properties, and others transitioning back from the short-let market.
Despite these developments, the demand for rental properties continues to outpace availability. This situation is anticipated to contribute to an average rental increase of 5% next year, a notable decrease from the double-digit growth experienced in previous years.
Bannister concluded, “While renters still outnumber available homes, the indicators of a more balanced supply-demand scenario signal a projected moderation in rent increments for the upcoming year, marking a departure from recent trends of significant escalation.”