The latest property data highlights the most sought-after locations for renting in Britain, and Bristol has emerged as a frontrunner.
With letting agents in the city receiving an average of 51 enquiries per available property, Bristol’s rental market is now one of the busiest in the country.
Bristol’s Rental Demand Outpaces National Average
According to the new Demand Tracker report, Bristol ranks third in terms of rental demand, just behind Wrexham and Glasgow. The average number of enquiries for rental properties in Bristol stands at 51, which is significantly higher than the national average of 19 enquiries per property. This data underscores the intense competition prospective tenants face in securing rental accommodation in the city.
This heightened demand places Bristol alongside other competitive rental markets, such as Plymouth and Bath and North East Somerset (BANES), where the number of enquiries per property is 50 and 45, respectively. The disparity between supply and demand has led to a challenging scenario for those seeking rental homes.
Rising Rental Costs
The surge in demand has inevitably impacted rental prices. As of now, the average advertised rent in Bristol is £1,658 per calendar month (pcm). In Bath and North East Somerset, this figure rises to £1,784 pcm, reflecting the high cost of housing in these areas.
Outside of London, rental prices have reached a record high of £1,349 pcm, marking a 5% increase compared to the previous year. However, this growth rate is slower than the 12% peak annual rate observed in 2022, signifying a potential stabilisation in rental price inflation.
Shifts in Rental Market Dynamics
Despite the busy rental market, there has been a slight improvement in the balance between supply and demand in 2024.
Rightmove’s data shows that the number of tenants searching for homes has decreased by 16% compared to last year, while the overall availability of rental homes has increased by 8%.
Tim Bannister from Rightmove notes that although at a macro level there appears to be some easing, many local markets have not yet felt this effect. “Prospective tenants are still likely to be experiencing a very hot and competitive market,” he commented.
Persistent High Demand Post-Pandemic
One of the key factors contributing to the robust demand is the residual effect of the COVID-19 pandemic. The number of tenants looking for homes remains 17% higher than in the pre-pandemic year of 2019, indicating a lasting shift in rental market dynamics.
Moreover, the supply of available rental homes is still lagging, with current figures showing a 32% reduction compared to 2019 levels. This shortfall exacerbates the competitive nature of the market, making it difficult for tenants to find suitable housing options.
Impact of Former Rental Homes Being Sold
An additional factor influencing the current market conditions is the increasing number of former rental homes being put up for sale. This trend reduces the available rental inventory, further tightening the market.
Prospective tenants face a dual challenge: not only is there limited availability, but they are also competing against higher rental prices. This convergence of factors underscores the complexity of the rental market in cities like Bristol.
Implications for Prospective Tenants
For those looking to rent in Bristol, the data highlights a clear need for strategic planning and swift action when properties become available.
With such high competition, tenants may need to be prepared to make quick decisions and possibly consider rental options outside the immediate city centre to find more affordable and available housing.
In conclusion, Bristol’s rental market remains one of the most competitive in the UK, driven by high demand and limited supply.
Prospective tenants must navigate a challenging landscape, marked by rising rents and fierce competition for available properties.