Latest data has revealed the locations where tenants new to a region account for the greatest proportion of new tenancies agreed.
HomeLet’s Rental Index Regional Variance Figures give the total number of new tenancies for people moving into an area. The latest report indicates that Wakefield, Coventry, Brighton, Nottingham and Greater London top the list for new tenancies from people new to the area.
Out of town
More than 25% of tenancies signed in the last year in Coventry and Wakefield were from people moving into the cities. Tenants moving to Greater London have also increased since the recession, with 18% of new tenancies agreed last year from new arrivals, as opposed to 11% in June 2008. What’s more, the average rent for people living in the capital was £1,515 per month in the three months to June. This represents a 10.1% increase from twelve months ago.
On average, rent for new UK tenants in the second quarter of 2015 was £956 per month, with increases in all regions of Britain, with the exception of London.
London has however shown the largest increase in average monthly rents since the recession, with a 51% increase. The capital was followed by Brighton with 25% and Coventry with 21%.
Tenants moving to new cities
The Index also indicates the British cities in which tenants are most likely to remain, by looking at the proportion of tenancies being signed by people who have lived elsewhere in the city. Belfast, Cardiff and Birmingham all proved popular with renters, with more than 95% of tenancies in these locations taken on by someone already residing in the region.
Martin Totty, chief executive officer of HomeLet’s parent company Barbon Insurance Group, stated, ‘the HomeLet Rental Index paints a fascinating picture: it reveals several hotspots around the country that are attracting and retaining tenants. 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.’
‘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,’ Totty added.