Demand for rental property across England fell by 12% between the third and fourth quarter last year, says Barrows and Forrester.
Overall, rental demand came to 33.9% in Q4 2022.
On a regional basis, the biggest fall was found in Bristol, which saw a drop of 28.9% in rental demand. Nottingham came second, with a fall of 21.5% and the City of London third, seeing a 20% reduction in demand.
There were a total of four areas where demand grew: Durham, by 12%, the Isle of Wight, with a 3.5% increase and Shropshire and Essex, each seeing 1.9% growth in demand for rental properties.
West Sussex saw the most demand overall, at 56.1% and the West Midlands saw the worst total, at 19%.
Barrows and Forrester managing director James Forrester says: “Rental demand is down across all but four areas of England and the rising cost of living and surging energy prices will be playing a significant part in this decline.
“Tenants are fully aware that landlords are seeing their own expenses rise, not least mortgage payments, and are passing these increasing costs to their tenants. As such, renters are choosing to stay put at the moment with tenancy agreements that were signed before the current economic crisis instead of exposing themselves to a market where prices are likely to get higher and higher.
“As the cost of living crisis eases, whenever that might be, rental demand will certainly increase. But for now, tenants are staying put.”
