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City rental demand climbs as return to workplaces goes on

A lettings agency’s research has revealed that rental demand has continued to climb across most major UK cities during the third quarter of 2021, as a slow return to the workplace spurs improved demand.

The Barrows and Forrester Rental Demand Index monitors listings in cities; it takes an average demand score for each major city based on where has the highest number of properties that are already let, as a percentage of all rental listings.

The analysis of 23 cities found demand averaged 42.9 per cent during the third quarter, a 9.9 per cent increase on the previous quarter and 6.8 per cent higher than this time last year.


Cardiff and Glasgow have enjoyed the largest quarterly uplift with rental demand climbing by 22.1 per cent in both cities.

Bristol and Edinburgh have also seen tenant demand lift by more than 20 per cent with Cambridge just behind.

Other cities to make the top 10 where a quarterly tenant demand uplift are concerned include Manchester, Newcastle, Southampton, Plymouth and Birmingham - all between 10 and 15 per cent.

Cardiff, Cambridge, Edinburgh, Manchester, Bristol, Glasgow and Birmingham also rank within the top 10 where an annual change in tenant demand is concerned.

They are joined by Newcastle, Bournemouth and Sheffield to complete the top 10 largest increases in annual rental demand.


The managing director of Barrows and Forrester, James Forrester, comments: “There have been numerous indicators of late that the UK rental market is starting to once again find its feet after one of the most difficult periods in recent times.

“The demand for city rental homes, in particular, was heavily impacted during the pandemic and as a result, many landlords were forced to stomach a significant decrease in rental income in order to secure a tenant.

“However, this is starting to change and we’re seeing a notable uplift in demand for rental properties across many of the nation’s major cities. We expect to see a further boost over the coming months as many tenants look to secure a property ahead of the new year and a fresh start.”


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