City centre renters are back - in force

With the prospect of offices reopening and bars, restaurants and shopping on the way back to normal, demand for city centre rentals saw a big, big increase in April.

Regional city centres have seen a boom in the last 20 years. Fueled by regeneration and driven by an ever increasing trend towards urban living, young professionals have moved into places like Manchester and Birmingham in huge numbers.

When the pandemic hit, demand softened but it never went away entirely. Vacancy rates remained low and letting agents' waiting lists shortened - they didn't disappear.

However, the inner London rental market took a big hit. Deprived of it's corporate, international student and tourist markets, the number of available properties increased by 80%. Rental prices plunged by close to 10%. Rents have started to recover, but it will take a long time to get back to pre-pandemic levels.

Many London renters are looking to future-proof this new affordability, with reports of many longer term tenancies being agreed.

Outside of London, the effect of lockdowns has been less keenly felt. Far from seeing pressure on prices, rentals have seen an average increase of 3% year-on-year - the highest for four years.

Rental prices in the regions are being driven by a renewed surge in demand - 58% higher than the period from 2017 to 2019, considered as a reliable barometer of normal market conditions.

As workplaces re-open and opportunities for social activities return, this trend is likely to continue for some time yet.