Tenant demand is now being driven by a race for more space, Hamptons International claims.

Data from the agent, based on activity across all Countrywide branches, has identified an increase in the number of tenants leaving cities and moving to smaller towns or suburbs in order to upsize.

Demand from applicants looking to rent has risen 1% year-on-year in small towns and suburbs, whilst it’s down 23% in city locations across Great Britain, according to the research.

In the four months between May and August, 34% of tenants that moved home upsized, adding at least one extra bedroom, Hamptons International said.

This compares with 25% during the first three months of the year.

A quarter of moves post-lockdown were from a flat to a house between May and August compared with 16% during the pre-pandemic period in the first three months of 2020.

Tenants upsizing paid an average of 23% or £149 a month more in rent.

The data also shows the average rent in Great Britain fell 0.5% year-on-year in August, led by London where there was a 3.9% annual decline.

London remains the only region of the country where there are more homes to rent (+34%) than at the same time last year.

Across Great Britain, there were 11% fewer homes available to rent than in August 2019, with northern regions recording some of the largest falls.

The north east of England saw the largest decline, with 45% fewer homes to rent than at the same time last year.

Aneisha Beveridge, head of research at Hamptons International, said: “Renters have joined home owners in the race for space by rushing to the suburbs where the number of tenants looking to rent is up on last year.

“With tenant’s priorities changing, upsizers have swapped smaller city centre flats for three-bed semis on the fringes of town.

“While the premium placed on green space is growing each month, upsizing tenants have typically stuck to the outskirts of cities they know rather than leaving altogether.

“Rental growth remained subdued in August, most notably in the capital and the markets immediately surrounding it.

“The number of homes coming up for rent is down on last year, partly due to landlord purchases being much slower to bounce back in comparison to the number of homes bought by first-time buyers and owner-occupiers.

“Demand from new tenants also remains below last year’s levels across most of the country, with those choosing to move and take on higher rents less likely to have been affected by the economic crisis.”