
London has rebounded as the strongest and largest rental market after three years of post-pandemic wobble.
The capital is leading UK rental demand with a 13% rise in house searches, according to new research from Hiscox, which has uncovered the UK’s emerging buy-to-let hotspots for 2025, based on two years of tenancy search trends on Google across 1,000 UK locations.
Silvina Paz, London rental market specialist, says the capital’s rental market has undergone significant changes in recent years, especially since the pandemic. “Many people left the city in search of coastal and countryside life, and the number of properties available for rent has sharply declined,” she explains. “But now we’re finding people who left are making a comeback. This is partly because many companies and employers now require more days in the office rather than working from home. This demand versus supply imbalance has caused a steep rise in rental prices.”
International
However, international demand for the capital is falling: –21% for houses and –7% for flats, suggesting that renters abroad are widening their search beyond London, with demand increasing in towns and smaller cities that can often offer better value and more space.
Cities still dominate, but towns are becoming increasingly competitive in the top 15, including Bolton, Houghton-le-Spring, Warrington and Tamworth. Hiscox reveals that the appetite for coastal views and proximity to the sea remains, particularly in the house rental market; more than half of the top trending locations sit on or near the coast, including Troon, Whitby, Skegness, Brixham and Clacton-on-Sea.

As the rental market continues to shift, staying attuned to tenant demand is crucial for landlords aiming to make smart, future-focused decisions, advises the insurer, which believes its findings highlight how lifestyle changes, remote work, and even social media trends are driving where people want to live.
“For landlords, these emerging patterns can help inform everything from location choices to property type,” says Michael Dear, landlord insurance product lead. “Whether you’re new to buy-to-let or expanding your portfolio, understanding where demand is building is vital to minimising void periods and futureproofing your investment.”
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