Analysis by Pepper Money has shown that search interest for rental properties in the city is the highest compared to the rest of Britain, with 659 searches per 10,000 residents.
It also scores highly for average rental yield, with tenants paying around £1,227 per month, which is 15% higher than the average monthly cost of a two-bedroom property, which is £1,065.
Meanwhile, Bath and Exeter ranked second and third in the Tenants Index survey, according to Pepper Money.
Bath ranked third in terms of search interest, with 340 searches per 10,000 people, indicating high demand for rental properties.
The area has also experienced significant rental inflation, with an average annual increase of 9.7% for one and two bedroom properties.
The average rental cost across the area ranks seventh overall, at around £1,550 per month. These factors pushed Bath and North East Somerset into second place in the survey.
In Exeter, in third place, 60% of rental properties were allocated as student accommodation. Pepper Money suggested that the increase in rental demand could be behind the high number of searches for ‘rental properties’ in Exeter, which ranks second out of 42 for the highest search interest in rental properties in the index.
The city was consistent across the entire survey, ranking 13th for average rental costs and below average for available rental stock, at 31 per 10,000 residents, six less than the UK average.
At the bottom of the rental demand index were Salford and Leeds. Salford in Greater Manchester scored lowest in Pepper Money’s research and recorded the highest number of homes available on the market, with 204 per 10,000 residents – this is 451% higher than the survey average of 37.
Salford also ranks lowest for time on market, with properties spending an average of 240 days on the market, which is 67 days longer than the UK average.
Paul Adams, sales director at Pepper Money, said: “We can see rental demand in Britain continuing to grow. Our research shows strong search interest in 42 locations, in addition to very short rental periods. Properties such as semi-detached and three-bedroom properties are on the market for just 122 days and 132 days respectively.
“This suggests that tenants are taking swift action to secure their homes in an extremely competitive market, and it is something that landlords can see and work with tenants to secure the tenants they want.
“As this shift in the rental sector continues, there is an opportunity for tenants and landlords to work more closely together. There is a greater demand for stability, reliability and greater trust on both sides.
“Landlords who understand the changing needs of their tenants, such as longer leases and, in some cases, more space, are more likely to succeed and capture long-awaited tenants in this competitive market.”
Some other rental stats courtesy of Pepper Money
Plymouth has the fastest turnover of rental properties, which are on the market for an average of 117 days.
Semi-detached houses are the most sought after, spending only 122 days on the market in the 42 areas analyzed.
London remains the most expensive place to rent, with tenants paying an average of £2,247 per month. Tenants in London pay 31% more than tenants in Oxford, who come in second.
The south has fewer homes available per tenant, with Southend-on-Sea offering just six homes per 10,000 residents.