Chichester has emerged as the UK’s most competitive rental market, according to new research highlighting rising demand in the key regional hotspot.
Analysis by Paper Money, which evaluated 42 locations using metrics including search activity, rental inflation, stock levels and rental momentum, ranked the West Sussex town highest overall.
Chichester recorded 659 searches per 10,000 people – the highest in the study and almost double that of Exeter, the next highest ranking place for search activity. The average rent in the city is just over £1,200 per month, with particularly strong demand for three-bedroom homes.
Bath and North East Somerset came second in the index due to high search interest and the fastest rental price growth in the country. Rents for one and two bedroom properties in the area have increased by an average of 9.7% year-on-year, with the typical monthly cost being around £1,550.
York remained in third place, supported by steady demand and rental growth of around 6%, which is slightly above the national average.
Other high-ranking locations include Oxford, Exeter, Chelmsford and Winchester, with the list dominated by southern and commuter-belt markets where supply remains constrained.
At the other end of the index, Salford ranks lowest due to the high amount of rental stock available, with 204 properties per 10,000 people – more than four times the study average. Peterborough and Leeds are also among the weakest markets, reflecting low search demand and longer rental times.
Paul Adams, sales director at Paper Money, said: “We can see demand for rentals in the UK continuing to grow. Our research highlights very short rental periods as well as strong levels of search interest across 42 locations.
“Properties such as semi-detached homes and 3-bedroom homes are only on the market for 122 days and 132 days respectively. This shows that tenants are moving quickly to secure their homes in an extremely competitive market, and this is something landlords can look at and work with tenants to secure desirable tenants.”
Adams said: “As this shift to renting continues, there is an opportunity for tenants and landlords to work closer together. There is a greater demand for stability, reliability and greater trust on each side.
“Landlords who understand the evolving needs of their tenants, such as longer tenancies and, in some cases, more space, are more likely to succeed and secure those tenants in this competitive market.”