The Renters’ Rights Act, coming into force on May 1, 2026, will hand 11 million UK renters stronger rights and greater security in their homes. While the law reshapes how landlords manage their properties, it also opens new opportunities in the country’s highest-demand rental markets.

Pepper Money can reveal the 10 locations where renters are facing fierce competition – analysing search interest in rental properties, stock levels, rent inflation, letting speed, and average rent by property type.

Search interest for rented homes in Chichester is at its highest here in comparison to the rest of the UK, with 659 searches per 10,000 people.

The West Sussex city also ranked highly for average rental yield, with renters paying around £1,227 per month.

According to the study, this is 15% higher than the average monthly cost of a two-bedroom property, which stands at £1,065.

In second place was Bath and North East Somerset, driven by strong search interest and rising rental prices. Bath ranked third for search interest, recording 340 searches per 10,000 people, indicating high demand for rental homes. The area has also experienced significant rental inflation, with average annual increases of 9.7% for one-bedroom and two-bedroom properties. Average rental costs across the area rank seventh overall, at around £1,550 per month.

Together, these factors give Bath and North East Somerset second place in the study, despite ranking near the top of the longest time on the market.

The popular student city of York is ranked third across the overall rental index. The Yorkshire location ranked sixth for searches per 10,000 people, with 243. It also ranked in the top 20 of rental inflation across the country, with 6%, just above the average of 5.8%.

Salford, Peterborough and Leeds fall to the bottom of the rental demand index. Salford ranked lowest in Pepper Money’s study.

The Greater Manchester area recorded the highest level of properties available on the market, with 204 properties per 10,000 people, which is 451% higher than the study average of 37. Salford did rank well however for how long unlet properties were on the market, ranking fourth with 193 days on average.

Peterborough came second bottom of the index, although the city ranked the lowest for overall days on the market at 153; low demand of searches per 10,000 people and no data surrounding price or inflation could mean a risky investment for landlords.

Leeds joins Salford and Peterborough at the bottom of the index.

The West Yorkshire city was ranked third behind Canterbury and Salford for available houses on the market, with 120 per 10,000 people. The city also featured in the top 15 areas with the longest time on the market, with 352 days, 60 days over the average time for houses to sell.

Commenting on the findings Pepper Money sales director Paul Adams said:  “We can see that rent is continuing to grow in demand in the UK. Our research highlights strong levels of search interest across 42 locations, alongside very short letting periods.

“Properties such as semi-detached homes and 3-bedroom homes are on the market for just 122 days and 132 days, respectively. This suggests that renters are moving fast to secure their homes in an extremely competitive market, and it’s something that landlords can see and work with renters to secure desired tenants.”

He concluded: “As this shift in renting continues, there is an opportunity for renters and landlords to work more closely together. There is a greater demand for stability, reliability and more trust on each side. Landlords who understand the evolving needs of their renters, such as longer tenancies and, in some cases, more space, are at a greater chance of succeeding and securing those longed-for tenants in this competitive market.”