How renters are searching for their next home

Our latest snapshot of the rental market highlighted how busy it is compared to the more normal levels seen in 2019, before the pandemic.

The number of enquiries each rental property receives from would-be tenants is now 17 which, and while this is down from 26 a year ago, it's more than double the number of enquiries we were seeing in 2019.

Average search area for renters expands by more than 60% in 5 years

We've been seeing that people are now searching further afield to find their next rental home, compared to 2019, as demand from tenants remains high.

Over the last five years, the average search area people are looking to find their next rental home within has stretched by more than 60% (40sq kms). This means that the search area that a tenant looking for their next home explores is now over 100sq kms.

This is due to many factors. One likely factor is the shortage of rental properties compared to the number of tenants looking to move, with many tenants struggling to find a home in their area. Another factor is likely rising rents, with tenants looking further and wider to find a home within their budget.

More renters are searching for homes outside of cities

One thing we can see in our data, is that generally, the majority of people tend to look for their next home in the same area that they live. However, during the pandemic we saw a trend of more people in both the sales and the rental markets leaving cities in favour of more coastal or countryside locations. Since then, this trend has been reversing in the sales market.

However, in the rental market, with rents reaching record highs, tenants have been continuing to leave cities and look for homes further out than they used to.

In London, more than a third of renters (34%) are looking to move outside of the capital, compared to 30% in 2021.

In Leeds, the majority (52%) of renters are looking to live outside of the city, compared to 46% three years ago. And in Glasgow, 43% are looking beyond the city, which is up by 4% since 2021.

Search for homes available to rent

More rental homes are needed

The number of available properties is currently 14% higher than this time last year, while tenant demand is down 16% compared to last year.

However, despite these improvements, there is still a way to go to reach the supply and demand levels we were seeing before the pandemic. The number of available homes to rent is still 20% below 2019, while 22% more tenants are looking to move than in 2019.

Our recent study showed that around 120,000 more rental properties are needed to bring rental price growth back towards more normal pre-pandemic levels, based on current demand.

There have been some early positive signs from the new government regarding improvements in the rental market for tenants. The Renters' Rights Bill in England, introduced in the King's Speech in July, will remove Section 21 evictions and enhance rights and protections for renters.

Labour has also pledged to get 1.5 million more homes built, which could improve the availability of rental properties for tenants if some go to the private rented sector, or more tenants can become first-time buyers.

More government support for landlords is needed to increase the supply of rental homes

Rightmove is also calling for further support from the government for landlords to encourage investment in the private rented sector, particularly any help with making properties more energy efficient. A balanced approach to the rental market that acknowledges the importance of landlord investment will ultimately benefit tenants, providing them with a broader choice of higher-quality homes.

Our property expert Tim Bannister says: "With 17 enquiries for every available rental property, the market remains out of balance and difficult for tenants. We need landlord investment to increase stock and help achieve a healthier supply and demand balance in the market.

"There is an opportunity to encourage landlords to continue to invest in good quality homes, for example through tax changes, incentives to help with energy-efficient upgrades or a general sentiment change in government towards working alongside and with landlords.

"Landlords have previously told us that the government's perception of landlords is one of their main concerns about the sector. Support for both tenants and landlords will be key to achieving long-term stability in the rental market," he adds.

3 in 4 people find their rental home on Rightmove*

If you're looking to have the best chance of finding a tenant for your property, make sure you choose an agent that advertises with Rightmove.

Choosing an agent to market your property means that they will take care of all the marketing. The agent will also ensure all of the details are correct and nothing important has been omitted, in line with the Consumer Protection from Unfair Trading Regulations 2008 (CPRs) that have replaced the Property Misdescriptions Act in 2013. An agent will also provide advice on your legal obligations.

We have by far the biggest home-moving audience and deliver the best results for agents and landlords:

• Over 80% of all time spent on property portals is on Rightmove**
• Rightmove has the largest choice of properties to rent in the UK

You can check out our Find Agent page to have a look at the agents you could choose to work with.

Sources:
*Street Data from 1st January 2024 - 30th April based on a sample of tenancies comparing Rightmove with the next largest portal.

**Time in minutes spent on Rightmove platforms (site and app), relative to other property portals.

Read more:Marketing and advertising your rental property

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