"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 market is showing signs of recovery among domestic tenants, though international appeal has declined sharply, according to new research from specialist insurer Hiscox.
The landlord insurer analysed British and global Google search data for flat and house tenancy enquiries across 1,000 UK locations, identifying areas that have seen the biggest increase in searches and could represent emerging opportunities for landlords. Hiscox compared searches for "flats to rent in [location]" and "houses to rent in [location]" over the last two years to reveal where appetite has grown among British and international tenants seeking UK rental properties.
After an unstable period since the pandemic, London remains the UK's biggest rental hub and has experienced a notable rise in interest, suggesting demand still exists in the capital. British tenants made 45,000 more search enquiries for houses to rent in London, representing a 13% increase. Demand for flats in the capital also grew 4%, equivalent to 20,000 additional enquiries.
However, demand fell 21% among international property seekers. Search enquiries by international flat hunters dropped 7% for London, translating to 59,000 fewer searches. House hunters declined 21%, which meant 50,400 fewer searches.
Cities occupied the top three trending positions 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 spot among a sea of cities.
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 figure halved to 40% for house-hunters. International tenants were mostly split between smaller settlements and city life, with cities accounting for 53% of flat-hunters' trending locations and 60% for house-hunters. Trending towns across the analysis included Brackley in Northamptonshire, Houghton-le-Spring in Tyne and Wear, Warrington in Cheshire, and Tamworth in Staffordshire.
Though city life showed signs of revival, the appetite for the UK's coastline still flourished. This was most notable 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 at Hiscox. "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," he continued. "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 added.
"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."
