Demand for city centre living is on the rise, with renters now looking to take advantage of discounted rents as the nation prepares to exit lockdown.
With an end to restrictions in sight, rental enquiries have been surging in some city centres according to new analysis by Rightmove.
The research looked at the uplift in enquiries relating to rental properties since February last year, and found that some city centres were experiencing high demand.
Enquiries about properties in Sheffield city centre are up 102 per cent, whilst in Manchester they are up 69 per cent.
![City centres seeing the highest number of rental enquires according to Rightmove's analysis.](https://i.dailymail.co.uk/1s/2021/03/10/16/40303654-9343711-image-a-1_1615395276357.jpg)
City centres seeing the highest number of rental enquires according to Rightmove’s analysis.
Renters looking to move into city centres will also find significant price drops in some major cities, including London, Coventry and Manchester.
Coventry city centre rents are down 16 per cent on last year, with average monthly prices now at £845, down from £1,000 last February.
Prices in Manchester city centre are on average down seven per cent, whilst the city centres of both Birmingham and Leeds are down five per cent year-on-year.
According to Rightmove, there is a growing trend of people wanting to move back to urban hubs, now that lockdown is easing and a return to the office and more opportunities for socialising are in sight.
Lettings agents also say they are beginning to see this trend emerge and remain bullish in their belief that city centres will be back in fashion before long.
![Whilst average rents outside of London went up 3.7% over the past 12 months, some major UK cities saw prices fall as demand fell.](https://i.dailymail.co.uk/1s/2021/03/10/15/40300320-9343711-image-a-3_1615390156256.jpg)
Whilst average rents outside of London went up 3.7% over the past 12 months, some major UK cities saw prices fall as demand fell.
‘Some major cities are seeing a significant rise in demand, with Bristol, Birmingham and Manchester seeing the biggest uplifts,’ says Verona Frankish, managing director of lettings at Purplebricks.
‘London will also absolutely bounce back, so if you are considering moving in the capital or any of the major cities, there are some fantastic deals to be had if you get ahead of the game.’
![Rental prices in Manchester city centre have dropped by 7 per cent year-on-year but demand is beginning to pick up according to Rightmove.](https://i.dailymail.co.uk/1s/2021/03/10/15/40269270-9343711-image-m-16_1615390234439.jpg)
![Coventry has seen its city centre prices drop by an average of 16 per cent over the past year.](https://i.dailymail.co.uk/1s/2021/03/10/15/40269278-9343711-image-m-17_1615390255885.jpg)
Cities such as Manchester and Coventry have seen city centre rents drop in the past year
One London-based letting agent says that business so far in 2021 has proved more fruitful than in the two years preceding it.
‘In terms of lettings revenue, we’ve now surpassed where we were at this stage in 2019 and 2020 – so people still do want to live in the city,’ says Lucy Pendleton, co-founder of James Pendleton Estate Agents.
‘I’m sure that working patterns will continue to evolve, as they have done over the past year or so, and that may mean more home working than before, but once pubs and bars and the rest of that industry reopens, I expect we’ll continue to see interest increase even further.’
Central London is offering the biggest discounts
Annual enquiries for rental homes in central London have jumped significantly according to the Rightmove study.
The top 10 most-searched areas of the capital have, on average, seen falls of 15 per cent in asking rents over the past year.
Nine Elms in Wandsworth has seen the biggest annual rise in rental enquiries, up 126 per cent, with renters keen to make the most of a £500 drop in monthly rental prices when compared with last year.
![Rents in Battersea and Nine Elms in South West London are down between 10-15% on average](https://i.dailymail.co.uk/1s/2021/03/10/07/40269272-9343711-image-a-16_1615362919288.jpg)
Rents in Battersea and Nine Elms in South West London are down between 10-15% on average
Battersea and Clapham Common are also in demand, with rental searches having more than doubled in both locations.
All of Rightmove’s top 10 rental hotspots are within London travel zones one and two, a contrast compared to last August when rental demand in the capital was focussed on outlying areas such as Croydon and Kingston Upon Thames.
The tide appears to be turning, with annual growth of rental enquiries in Inner London now outperforming last summer’s search activity, according to Rightmove’s analysis.
![There was a trend for renters to seek out greener suburbs away from city centres in 2020. However, with lockdown coming to an end the expectation is that renters will return](https://i.dailymail.co.uk/1s/2021/03/10/07/40269282-9343711-image-a-17_1615362932020.jpg)
There was a trend for renters to seek out greener suburbs away from city centres in 2020. However, with lockdown coming to an end the expectation is that renters will return
‘Last year, we identified a clear trend of renters moving out to quieter parts of Greater London as the allure of life in the city centre became less appealing during lockdown,’ said Tim Bannister, director of property data at Rightmove.
‘With the prospect of some kind of normality potentially on the horizon, it appears that the capital’s renters are now looking to return to Inner London and are making the move now to take advantage of the lower rents.
‘Our list of London’s top rental hotspots is dominated by locations in zones one and two and that represents a significant shift in search behaviour.’
For those looking for the greatest rental discounts, Hyde Park in Westminster is down 30 per cent year-on-year – though it is has far from the lowest prices with average asking rents per month now at £2,346.
Big discounts can also be had in Notting Hill, where average rental prices are down 19 per cent having fallen from £3,557 to £2,881 per month.
![According to Rightmove, Canary Wharf ranked 203rd in terms of annual growth in rental searches last August, but the urban hub has now moved up the rankings to eighth place](https://i.dailymail.co.uk/1s/2021/03/10/07/40269274-9343711-image-a-18_1615362952372.jpg)
According to Rightmove, Canary Wharf ranked 203rd in terms of annual growth in rental searches last August, but the urban hub has now moved up the rankings to eighth place
Although cheaper rent will be a draw for some people, the promise of lockdown restrictions ending and pubs, restaurants and shops re-opening will also appeal.
‘Despite short-term uncertainty and some people moving out of London temporarily, the fact is that most young professionals want to be amongst the buzz of the city – it’s the reason they moved here in the first place,’ says Glynis Frew, chief executive of Hunters Estate Agents.
‘With the vaccine providing light at the end of the tunnel, many will be planning their next move as life starts to return to normal and their places of work start to open up again.’
So is now a good time to start looking?
As lockdown restrictions continue to ease between now and 21 June, the resurgence of demand in city centres may continue to grow.
If this happens, prices are likely to rise as more and more people compete for city centre homes.
‘The unpleasant idea of the commute back into work, the hope that fun in the city will resume at the earliest opportunity and the idea that you can still get a good deal on city living is all too tempting,’ says Charles Adcock, regional lettings director at Hamptons.
‘There are great opportunities to make the most of this and make the most of being part of the post-Covid boom, prior to prices potentially reflecting that.
‘I would say act now, get ahead of the curve and take advantage of prices that haven’t been seen in the last 10 years.’