2022 Renters' Report

While rental demand is on the up, it’s a great time to purchase a buy-to-let property. For those who are looking to enter the buy-to-let market, where are the best places in the country to target?

The buy-to-let mortgage experts at money.co.uk have looked into the percentage of private renters around the country and surveyed renters to see how satisfied they are.

If you are interested in becoming a private landlord, make sure to compare buy-to-let mortgages to get the best deal.

The areas with the highest percentage of rental properties

1. Westminster, London - 42.55% of homes are privately rented

The area with the highest number of renters is Westminster, in London, where 42.55% of homes are privately rented.

With such demand for rental properties, it’s unsurprising that the London rental market is so expensive, and Westminster is one of the capital’s most central boroughs.

The average property in the borough currently costs just shy of a million pounds, so buying outright is out of the question for many.

2. City of London, London - 40.41% of homes are privately rented

The area with the second biggest rental market is also in Central London, with 40.41% of properties in the City of London privately rented.

Again, it’s among the most expensive places for property in the country, with average house prices of £810,106 which leads to higher rental prices.

Also known as the Square Mile, the City is London’s historic centre and home to its financial district and tourist attractions like St. Paul’s Cathedral.

3. Kensington & Chelsea, London - 37.38% of homes are privately rented

Another Greater London borough comes in third place. In fact, each of the top 10 areas with the most renters are located in the capital.

37.38% of homes in Kensington & Chelsea are privately rented and it is also the most expensive area in the country, with properties averaging £1.3 million.

The areas with the lowest percentage of rental properties

1. North East Derbyshire, East Midlands - 9.69% of homes are privately rented

At the other end of the scale, the area where the fewest people choose to rent their home is North East Derbyshire.

This is the only place in the country where fewer than 10% of homes are privately rented.

The area has undergone significant regeneration since the loss of the coal mining industry, with many former mining areas being turned into business parks.

2. Rochford, East of England - 10.32% of homes are privately rented

In second place is Rochford, located in Essex, where just over 10% of homes are privately rented.

Rochford is a popular commuter town for those working in London, with a direct rail connection to Liverpool Street station.

3. South Staffordshire, West Midlands - 10.57% of homes are privately rented

Another Midlands area comes in third place, with just 10.57% of homes in South Staffordshire being privately rented.

Many of the towns and villages in the area are commuter areas for those working in places like Cannock, Stafford and Telford, and Birmingham further afield.

The areas with the highest percentage of rental properties outside of London

1. Manchester, North West - 31.36% of homes are privately rented

With each of the top 10 places being located in London, the highest-ranking non-London area is Manchester.

In Manchester, 31.36% of homes are privately rented. One of the North’s major cities, Manchester has a younger population than the national average and has undergone considerable redevelopment in the last 20 years.

2. Brighton & Hove, South East - 31.11% of homes are privately rented

Not far behind Manchester is the city of Brighton and Hove, where around 31% of the homes are privately rented.

Like Manchester, Brighton is one of the country’s major cities, with built-up areas generally tending to have a higher number of renters.

3. Hastings, South East - 29.82% of homes are privately rented

Another seaside town in the South East comes in just behind Brighton, with just under 3 in 10 homes in Hastings being privately rented.

Hastings is best known for the famous battle that took place nearby but has undergone significant regeneration in the last 20 years.

Areas with the most affordable rent

1. Copeland, North West

Average monthly rent: £500

Average monthly income (gross): £2,716

Rent as % of income: 18.41%

The area with the most affordable rent if you’re renting privately is Copeland, in Cumbria. Here, the average person earns £2,716 a month, but the average rental prices are just £500.

The area is home to the Sellafield nuclear site, which attracts highly skilled and paid workers, yet it is still one of the most affordable areas for a property.

2. Allerdale, North West

Average monthly rent: £495

Average monthly income (gross): £2,470

Rent as % of income: 20.04%

The neighbouring area of Allerdale has the next most affordable rent, with rental prices making up around a fifth of monthly income. While rental prices are slightly lower here, so are the average earnings.

Allerdale contains much of the Lake District, including the town of Keswick and the lakes of Derwentwater and Bassenthwaite.

3. Barrow-in-Furness, North West

Average monthly rent: £550

Average monthly income (gross): £2,373

Rent as % of income: 23.17%

Another Cumbrian area completes the top 3, with rental prices making up 23.17% of average earnings in Barrow-in-Furness. Rental prices here are a fair bit higher than in the other 2 areas (£550).

A port town known for its shipbuilding, Barrow is home to the UK’s largest shipyard by workforce, which accounts for much of the employment.

The least affordable areas for renters

1. Kensington and Chelsea, London

Average monthly rent: £2,199

Average monthly income (gross): £3,297

Rent as % of income: 66.69%

While Kensington and Chelsea has the highest monthly earnings in the country (£3,297.17), it also has the highest average rent (£2,716). This means that people renting here pay around two-thirds of their income on rent.

2. Hackney, London

Average monthly rent: £1,600

Average monthly income (gross): £2,433

Rent as % of income: 65.77%

In second place is Hackney, where rent makes up 65.77% of the average monthly income. Hackney has undergone significant gentrification in recent years, attracting many young workers to the area.

Like many other parts of the capital, it also benefited from hosting the 2012 London Olympics, with many of the venues in the borough.

3. Brent, London

Average monthly rent: £1,450

Average monthly income (gross): £2,294

Rent as % of income: 63.20%

Unsurprisingly, another London borough completes the top three least affordable areas for renting.

Average rent prices in Brent are £1,450, which makes up 63.2% of the average monthly income.

Brent has both inner-city and suburban areas and its best-known landmark is Wembley, the country’s largest stadium.

The least affordable areas for renters outside of London

1. Hertsmere, East of England

Average monthly rent: £1,250

Average monthly income (gross): £2,192.17

Rent as % of income: 57.02%

The least affordable area for renters outside of London isn’t too far from the capital.

Hertsmere is located in Hertfordshire, which is just outside of London itself. Average rents here are £1,250 a month, 57.02% of earnings.

2. Epsom and Ewell, South East

Average monthly rent: £1,300

Average monthly income (gross): £2,458.92

Rent as % of income: 52.87%

The second-least affordable area for renters outside the capital is the area surrounding the two Surrey towns of Epsom and Ewell.

Unsurprisingly, like Hertsmere, the area is located right outside of London, with rent making up 52.87% of the average monthly income.

3. Harlow, East of England

Average monthly rent: £1,123

Average monthly income (gross): £2,124.08

Rent as % of income: 52.87%

In joint second place is Harlow, another town that borders London. Harlow was founded as a ‘new town’ after World War II to help ease overcrowding in the capital.

Today it's an important part of the London commuter belt, and has undergone lots of redevelopment.

How satisfied are tenants with their landlords?

While we’ve all heard landlord horror stories, it turns out that the majority of renters are actually fairly satisfied with theirs.

Over 80% of surveyed tenants said they were either satisfied (52%) or very satisfied with their landlords (29%). Only 8% actually said they were unsatisfied (7%) or very unsatisfied (1%) with theirs.

This was similar across different ages and genders, but those on higher incomes are less likely to take issue with their landlords.

Those earning between £30,000 and £44,999 were least likely to be very satisfied with their landlords (23%), while 58% of those earning over £200,000 were.

How long do landlords take to respond?

There’s nothing worse than having to wait days or even weeks when you have urgent issues that you need your landlord to resolve.

Most people (43%) said that they usually have to wait between 2 and 3 days for a response from their landlord.

Over 10% had to wait at least a week, while 3% said that their landlord can take over a month to get back to them.

Do people feel that their landlords listen to them?

When asked if they believe that their landlord listens to their concerns and acts on them, 1 in 5 tenants said no.

Male tenants were slightly more likely to feel listened to by their landlords than female tenants, at 81% compared to 79%.

18 to 24-year-old tenants felt the most valued by landlords, with 82% answering yes.

Once again, the highest earners showed the best landlord relationships, with 95% of those earning £200,000 or more saying their landlord listened to them.

How long do landlords take to make repairs?

The majority of people said that their landlord usually takes between 1 and 2 weeks to carry out any household repairs on their rental properties.

However, a considerable amount of tenants (18%) surveyed said that they have to wait at least a month on average.

When looking at those who experienced the longest waits, female tenants usually seem to get the worst deal. 11% of women had to wait over 3 months (compared to 7% of men).

How much deposit do people lose?

Losing some or all of your rental deposit when your tenancy ends can leave a sour taste. Of those surveyed, 63% of people said that they have lost at least some money to deposits during their time renting.

While many said they had lost less, 15% of people said that they had lost more than £500 while renting.

Men were much more likely to have lost some of their deposit than women, with 68% compared to 60% of female tenants.

18 to 24s are the group most likely to have lost a deposit, with 74% having lost some or all of their deposit, compared to just 38% of those 55 and over.

But 35 to 44-year-olds are most likely to have lost big money, with just under 1 in 5 saying that they’ve lost more than £500.

How to be a good landlord 

Although it always helps to be nice, being a good landlord doesn’t just benefit the tenant. When a landlord implements good habits, they can attract and retain great tenants and build a relationship with mutual respect. Here are Money.co.uk’s top tips on how to be a good landlord.

Communication and availability

Set a method of communication and reasonable contact hours. Whether it’s Monday to Friday 9-5, calling a specific work phone number, or contacting via email, make it clear when and how your tenants can get in touch with you and honour that.

Address issues quickly

Establish trust by making sure you are readily available to act quickly and respond to issues. If something legitimately cannot be fixed quickly, at least get the process moving as fast as possible and communicate this to your tenants. It may be your property but it's your tenant's home.

Repairs

Rentals require a specific budget for repairs, which will inevitably be needed at some stage. You should never put off repair work because you cannot afford to pay for it, as tenants expect you to be responsible for property management. Equally, make sure you hire professionals when needed, especially for elements where regulatory requirements exist, such as gas and electricity maintenance.

Be firm but fair

Nurture a good relationship by maintaining a friendly attitude with tenants, but always keep it professional. This is why it's not recommended to rent a property to friends and family as your rental property should be treated as a business. The best way to be fair and avoid unnecessary disputes around payments or repairs is to be meticulous with documents, reporting and records.

James Perrin, a landlord from Cornwall commented on the struggles which landlords currently face: 

“One of the main things we’re struggling with as landlords are the rising maintenance costs of our properties.

“Not only has the price of materials gone up by around 15–20%, but I’m also seeing that the building companies and maintenance companies which I’ve relied on for years have now had to put their rates up due to inflation. With these rising costs, it’s not surprising that many landlords have decided to sell their properties.

“There are other reasons landlords are choosing to sell too, with so much economic uncertainty at the moment and a long-term recession predicted, people don’t want risks. We’re seeing landlords selling up because they’re worried about the potential of a housing market crash. 

“Unfortunately though, in areas like Cornwall, there are many landlords who will profit from this because they’ll happily pass their debt to the tenant by raising the rent. There’s a high demand for rental properties here and people need homes, so most tenants don’t have a choice but to pay.”