Post-Pandemic Migration and Urbanand Rural Rentals

The COVID-19 pandemic profoundly reshaped societal behaviours, with significant impacts on housing preferences and migration patterns across the country. Understanding post-pandemic migration trends is important, including due to their effects on urban and rural rentals.  

The Temporary Rural Rise

In the initial stages of the pandemic, there was a notable movement from urban centres to rural locations. Several factors drove this shift:

• Remote Work: The sudden transition to remote working eliminated the necessity for proximity to city offices, allowing individuals to consider more spacious homes in affordable rural areas.

• Desire for Space: Lockdown measures and the need for social distancing heightened the appeal of larger homes with gardens, which are more prevalent outside urban areas.

• Health Concerns: Densely populated cities were perceived as higher-risk zones for virus transmission, prompting some to seek the perceived safety of less crowded rural settings.

However, studies indicate that this migration was temporary. Research analysing mobility data from March 2020 to August 2021 found that while there was an initial increase in movement from high-density urban areas to low-density rural ones, these trends were not sustained. As restrictions eased, mobility patterns began reverting to pre-pandemic norms, with a resurgence of movement towards urban centres.  

The Resurgence of Urban Living

As the country adapted to the pandemic and vaccination efforts progressed, urban areas, particularly London, witnessed a revival in their rental markets. Several factors contributed to this renewed interest in urban rentals:

• Cultural and Social Amenities: Cities offer a plethora of cultural, dining and entertainment options, which became increasingly attractive as venues reopened.

• Employment Opportunities: Despite the rise of remote work, many industries maintained a preference for in-person collaboration, drawing professionals back to urban hubs.

• Educational Institutions: The return of students to universities and colleges in cities bolstered demand for city rentals.

Indeed, data from 2024 indicates that 33% of renters expressed a preference for living in urban areas, up from 25% in 2022, suggesting a waning desire for rural life post-pandemic.  

Impact on Urban Rental Markets

The resurgence in urban living has had notable effects on the rental market:

Increased Demand: The return of professionals and students to cities has heightened competition for rental properties. As businesses resumed in-person operations and universities reopened, many individuals sought housing in urban centres closer to work and educational institutions. This influx has intensified the demand for available rentals, leading to increased competition among prospective tenants.

Rising Rental Prices: With the resurgence of urban living, average monthly rents have increased since the pandemic. This is also in part due to a reduction in available rental properties as some landlords exited the market. The combination of heightened demand and a shrinking supply created a landlord's market, with tenants facing bidding wars and finding it increasingly challenging to acquire affordable housing within urban areas.  

Impact on Rural Rental Markets

The initial migration to rural areas and subsequent resurgence of urban living has had significant impacts on these regions:

Increased Demand for Holiday Lets: The strengthening 'staycation' trend led to a substantial rise in the conversion of regular 'assured shorthold tenancies' properties into holiday lets. This shift was initially driven by domestic travellers seeking local vacation options due to international travel restrictions and a renewed appreciation for the countryside. Consequently, many landlords found short-term holiday rentals more lucrative than traditional long-term lets. However, this trend raised concerns about the availability of affordable housing for local residents, as the surge in holiday lets reduced the stock of properties available for longer term tenancy.

Policy Responses: In response to housing affordability concerns, the Welsh Government increased the local council tax on second homes, raising it to 300% of the regular rate in April 2023. This measure aimed to discourage the proliferation of second homes and ensure more properties remained available for local residents. Following Wales' lead, the UK Government granted local authorities in England discretionary powers to increase council tax on second homes by up to 100% from April 2025. These policy interventions reflect a growing recognition of the need to balance the benefits of tourism with the housing needs of rural communities.  

What This Means for Landlords

Post-pandemic migration trends have significant implications for landlords operating in both urban and rural rental markets.

Urban Rentals: The resurgence in urban living has led to increased demand for rental properties in cities. This heightened demand has resulted in rising rents, with London experiencing record highs. For landlords, this presents an opportunity to achieve higher rental yields. However, the competitive market also means that tenants may have higher expectations regarding property quality and amenities. Landlords should ensure their properties are well-maintained and consider modernising features to attract and retain tenants. Additionally, staying informed about local market trends and adjusting rental rates accordingly can help maximise occupancy and returns.

Rural Rentals: During the pandemic, rural areas saw an influx of renters seeking more space and a perceived safer environment. While some of this demand has receded as normalcy returns, certain rural locales continue to attract tenants, including those that have adopted remote working permanently. Landlords in rural areas should assess the sustainability of rental demand in their specific regions. Offering flexible lease terms and highlighting features such as high-speed internet connectivity can make rural properties more appealing to potential tenants. It is also important to monitor local developments, such as infrastructure improvements or changes in remote work trends, which could influence future demand.  

Considerations for All Landlords

Supply and Demand Dynamics: The overall mismatch between rental demand and supply continues to exert upward pressure on rents. Landlords should be mindful of affordability constraints faced by tenants and consider the long-term implications of rent increases on tenant turnover and occupancy rates.  

Regulatory Environment: The rental market is subject to evolving regulations aimed at protecting tenants and ensuring housing quality. Landlords must stay updated on legal requirements, such as safety standards and tenancy agreements, to remain compliant and avoid potential penalties. By staying informed and adaptable, landlords can navigate the evolving rental landscape and optimise their investment outcomes.  

Conclusion

The COVID-19 pandemic undeniably influenced migration patterns and housing preferences. While there was an initial shift towards rural living, urban areas have regained their appeal as the country moved beyond the pandemic. Both urban rentals and rural rentals have experienced significant changes, highlighting the dynamic nature of housing demand in response to external factors. As the country continues to adapt, understanding such trends is essential for landlords, tenants, policymakers and developers alike.  

FAQs

Q: How have post-pandemic migration trends affected rental property demand in urban and rural areas?

A: The COVID-19 pandemic initially prompted a migration from urban centres to rural areas as individuals sought more space and perceived safety. However, as restrictions eased and workplaces reopened, many have returned to cities, increasing demand for city rentals. This shift has resulted in rising rents and heightened competition among tenants in urban areas. Conversely, some rural regions have experienced decreased demand, especially in areas where remote work is less feasible.

Q: Has the demand for city rentals returned to pre-pandemic levels?

A: Yes, as restrictions eased and urban amenities reopened, there was a resurgence in demand for city rentals. Factors contributing to this include the return of cultural and social activities, employment opportunities and reopening of educational institutions.

Q: How has the rural rental market been affected post-pandemic?

A: The rural rental market experienced increased demand during the pandemic as individuals sought more spacious living environments. However, as urban areas reopened and normalcy resumed, some of this demand shifted back to cities. The rise in 'staycations' led to more properties being converted into holiday lets, reducing the availability of long-term rural rental properties. Policy measures, such as increased council taxes on second homes, have been implemented to address housing affordability in rural areas.

Q: How can landlords adapt to the evolving rental market landscape?

A: To navigate the changing rental market, landlords can consider the several strategies, including:

• Staying Informed: Keep abreast of local market trends and regulatory changes to make informed decisions about property management and rental pricing.

• Property Upgrades: Invest in property improvements that align with tenant preferences, such as enhancing energy efficiency and providing high-speed internet connectivity, to increase property appeal.

• Flexible Tenancy Terms: Offer flexible tenancy terms to attract a broader range of tenants, including those seeking short-term accommodation or remote workers desiring temporary stays in rural areas.