A greater proportion of renters are leaving Great Britain’s cities to find a cheaper place to live or to get more for their money, the latest data from Rightmove reveals.
The data shows that across 10 major cities, 42% of renters are now looking to move out of the city they currently live in while the remaining 58% are looking to stay in the city.
This is an increase of 37% looking to leave last year and up from 28% in pre-pandemic February 2020.
London has seen the biggest increase in the proportion of renters looking outside the city compared with a year ago, followed by Sheffield and Manchester.
Rents rising at a record pace over the past few years and a decline in the number of available properties to move to are likely reasons that a greater proportion of renters are looking outside of the city to secure a home.
Average asking rents across Great Britain are up 11% compared with this time last year, and up 12% across ten major city centres on average.
Edinburgh City Centre has seen the largest increase in average asking rents compared with last year up 19% while Inner London saw an 18% rise and Manchester City Centre saw average asking rents go up by 14%.
Rightmove found that another contributing factor to leaving a city is that demand from renters to secure each available rental property has rapidly increased.
Competition to secure a home to rent in a city centre has gone up by 125% compared with three years ago.
However, competition between tenants is easing slightly compared with the record levels of last year.
Compared with last year, tenant demand for each available rental home across Great Britain has dropped by 4%, and the number of available homes to rent has increased by 8%.
Renters are also looking at a wider spread of areas than they did before the pandemic.
The average spread of areas a renter considers when moving has increased by 87% since February 2020.
The latest data suggests tenants are less certain about how much they can afford to pay when beginning their search for a home to rent.
Over one third of renters (35%) across Great Britain end their search with a property that is cheaper than the first one they contacted an agent about, up from 31% three years ago.
For those who can afford it, more renters are also ending their search with a more expensive property than the first one they contacted an agent about, up from 34% three years ago to 42% now.
With both figures rising, it shows tenants are less likely to stick to a budget during the course of their search, and more likely now to either look for somewhere cheaper, or budget for somewhere more expensive, in order to secure a home.
Rightmove’s property expert Tim Bannister comments: “The latest rental market trends demonstrate how cost pressures and the imbalance between supply and demand are changing the way tenants search for their next home.”
“We’re seeing that a greater proportion of prospective buyers are looking for a home in the city they live in, but it’s the opposite trend for renters who may be finding that they’ve been priced out of the city or have decided to move further out to reduce their overall bills.”
“Some good news for renters is that some competition with other tenants and pressure on available homes to rent seems to be easing, however with the pace of the lettings market still strong, it is likely to be a challenging experience for many looking to secure a home that suits their needs and budget.”
