The widespread popularity of remote work has influenced rental demand across the UK, altering preferences between urban centres and suburban locales.  

Urban areas: 

• Declining demand: As remote work reduces the necessity for daily commuting, many tenants are moving away from city centres in search of more spacious and affordable housing. This shift has led to decreased demand for urban rentals, particularly smaller apartments with limited amenities.  

• Rental price adjustments: The reduced demand in urban areas has resulted in slower rental growth rates. For instance, in London, the average rent stands at £2,190 per month, reflecting a modest 1.3% increase, indicating a stabilisation in rental prices within the city.* 

Suburban areas: 

• Increased demand: Suburban regions and smaller towns have experienced heightened interest from remote workers looking for larger living spaces, home offices, and access to outdoor areas. This trend is driven by the desire for a better quality of life and more affordable housing options.  

• Rising rental prices: The surge in demand for suburban rentals has led to notable increases in rental prices. For example, Northern Ireland and the North East have seen rental growth rates of 10.5% and 8.7%, respectively, highlighting the growing appeal of these areas.* 

Implications for landlords and tenants: 

• Landlords: Those with properties in urban areas may need to adjust rental expectations or enhance amenities to attract tenants. While suburban landlords might capitalise on increased demand but should be mindful of setting sustainable rent levels to maintain long-term occupancy.  

• Tenants: Renters prioritising space and affordability are increasingly considering suburban options. However, they should anticipate potential rent hikes in these sought-after areas and weigh them against the benefits of enhanced living conditions.  

In summary, the shift towards remote work has prompted a re-evaluation of rental preferences, with a discernible move from urban centres to suburban locales.  

Both landlords and tenants need to adapt to this changing market to achieve their goals while ensuring stability and value. 

Get in touch for expert advice on adapting to the changing rental market