Chichester is the top location for rental property demand, according to Pepper Money, which has produced a UK Rental Index, analyzing 42 locations to reveal where rental property demand is rising fastest.
Paul Adams
The Tenants’ Rights Act, which comes into effect on May 1, 2026, will give 11 million British renters stronger rights and more security in their homes. While the law changes the way landlords manage their properties, it also opens up new opportunities in the country’s most in-demand rental markets.
Pepper Money can reveal the 10 locations where renters face fierce competition – by analyzing rental property search interest, inventory levels, rental inflation, rental rate and average rent by property type.
Search interest for rental properties in Chichester is the highest here compared to the rest of Britain, with 659 searches per 10,000 residents.
The West Sussex town also scores highly for average rental yield, with tenants paying around £1,227 per month.
According to the research, this is 15% higher than the average monthly cost of a two-bedroom home, which is £1,065.
In second place was Bath and North East Somerset, driven by strong search interest and rising rents. 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, around £1,550 per month.
Together these factors see Bath and North East Somerset come second in the survey, despite being at the top of the market for the longest time.
The popular student city of York ranks third in the total rental index. The Yorkshire location ranked sixth for searches per 10,000 people, with 243. It was also in the top 20 for rental inflation across the country, at 6%, just above the average of 5.8%.
Salford, Peterborough and Leeds are at the bottom of the rental demand index. Salford scored lowest in Pepper Money’s survey.
The Greater Manchester region recorded the highest number of properties available on the market, with 204 properties per 10,000 residents, which is 451% higher than the survey average of 37. However, Salford scored well for the time unrented properties were on the market, ranking fourth with an average of 193 days.
Peterborough came in second at the bottom of the index, although the city was the lowest for total days on market at 153; The low demand for searches per 10,000 people and the lack of data on prices or inflation could mean a risky investment for landlords.
Leeds join Salford and Peterborough at the bottom of the index.
The West Yorkshire city was ranked third behind Canterbury and Salford for homes available on the market, with 120 per 10,000 residents. The city also ranked among the top 15 areas with the longest time on market, at 352 days, 60 days more than the average time for homes to sell.
Commenting on the findings, Paul Adams, sales director at Pepper Money, said: “We can see rental demand in the UK continuing to grow. Our research shows strong search interest in 42 locations, alongside very short rental periods.
“Properties such as semi-detached and 3-bedroom properties have only been on the market for 122 days and 132 days respectively. This suggests that tenants are acting quickly 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.”
He concluded: “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 on both sides for stability, reliability and greater trust. Landlords who understand the changing needs of their tenants, such as longer leases and, in some cases, more space, have a greater chance of succeeding and securing long-awaited tenants in this competitive market.”