London rental demand rises but fails to attract international tenants

London saw 45,000 more search enquiries for houses to rent among British tenants, a 13% increase, but international demand dropped 21% with 50,400 fewer searches.

Related topics:  Landlords,  Tenants,  Rental Market
Property | Reporter
10th December 2025
To Let 855
"As the rental market continues to shift, staying attuned to tenant demand is crucial for landlords aiming to make smart, future-focused decisions"
- Michael Dear - Hiscox

London's rental appeal shows signs of revival as flat enquiries increase as much as 13%; however, it fails to attract international tenants, according to new research from specialist insurer Hiscox.

Cities and towns across the UK compete for the top rental spots, as cities narrowly lead. Appetite for coastal views and proximity to the sea remains, particularly in the house rental market.

Celebrating the launch of its new landlord insurance product, Hiscox reveals the UK's emerging buy-to-let hotspots for landlords in 2025.

The landlord insurer analysed British and global Google search data for flat and house tenancy enquiries across 1,000 UK locations, revealing where the biggest increase in searches has been seen, which could be emerging opportunities for landlords.

Hiscox compared Google searches for "flats to rent in [location]" and "houses to rent in [location]" over the last two years to identify where appetite has grown among British and international tenants seeking a UK rental property. After an unstable few years since the pandemic, London remains the UK's biggest rental hub and has seen a notable increase in interest, suggesting demand still exists in the city.

There were 45,000 more search enquiries for houses to rent in London among British tenants, representing a 13% increase. Demand for flats in London also grew 4%, rising by 20,000 enquiries.

However, demand dropped by 21% among international property seekers. Search enquiries by international flat hunters dropped 7% for London (59,000 fewer searches). Similarly, house hunters declined 21%, which translated to 50,400 fewer searches.

Cities occupied the top three trending spots almost across the board, and flat and house trends mostly mirrored each other between British and international tenants. Bolton in Greater Manchester was the only town to take a number one position among a sea of cities.

However, when looking more broadly at the top 15 positions, towns became more competitive. Though cities accounted for 80% of British flat-seekers' wish list, this halved to 40% for house-hunters.

International tenants were mostly split between smaller settlements and city life. Cities accounted for 53% of flat-hunters' trending locations and 60% for house-hunters.

Across the analysis, trending towns included Brackley in Northamptonshire, Houghton-le-Spring in Tyne and Wear, Warrington in Cheshire and Tamworth in Staffordshire.

Though city life showed signs of a revival, appetite for the UK's coastline still flourished. Most notably among British house hunters, where over half (53%) of the top 15 trending locations were on or near the coast: Houghton-le-Spring, Troon, Skegness, Whitby, Brixham, Chester, Clacton-on-Sea and Truro.

The trend was less pronounced among flat hunters, where only two (13%) locations fit the bill: Clacton-on-Sea and Exeter. Equally, demand was not as strong among international tenants, where it ranged from 12% to 27% of the top 15.

"As the rental market continues to shift, staying attuned to tenant demand is crucial for landlords aiming to make smart, future-focused decisions," said Michael Dear, landlord insurance product lead. "Our analysis highlights how lifestyle changes, remote work, and even social media trends are driving where people want to live."

"While London remains a key hub for British renters, rising interest in cities like Cardiff and Birmingham points to growing opportunities in regional centres, which is likely driven by regeneration efforts and relative affordability,"

"We're also seeing signs that international renters may be widening their search beyond the capital, with increasing demand in towns and smaller cities that may offer more space and better value for families."

"For landlords, these emerging patterns can help inform everything from location choices to property type," Dear noted. "Whether you're new to buy-to-let or expanding your portfolio, understanding where demand is building is vital to minimising void periods and futureproofing your investment."

"That's why we're excited to introduce our new landlord insurance cover, designed to provide comprehensive protection for everything from loss of rent to legal disputes."

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