Rents soar in towns as tenants priced out of cities

Rental prices are surging in towns near cities as tenants seek more affordable options due to city price hikes.

Research indicates that towns within commuting range of metropolitan areas have experienced significant rent increases over the past three years, with figures from Zoopla showing over a 30% hike in places like Bolton and Newport from 2020 to 2023.

Even though cities like Glasgow, London, Manchester, and Edinburgh have also seen substantial rent growth, changes in work habits, including the rise of remote working, have enabled renters to move to larger homes further from city centers for possibly just a few days of commuting weekly.

Richard Donnell of Zoopla notes the trend towards more spacious rentals for remote workers, while real estate agents report intense competition for properties with good transport links to major cities.

Zoopla's data for the BBC, reviewing 65 UK cities and towns, found that six out of the ten largest increases were around London, Leeds, and Cardiff, including locations like Wigan, Newport, Bradford, Rochdale, and Luton, with Bolton leading at almost 39% growth over three years.

Stuart Matthews of Miller Metcalfe in Bolton has witnessed unprecedented demand in his 23 years, with properties being let quickly despite rent increases.

Bolton's appeal lies in its value for money compared to neighboring areas, with average rents for a two-bedroom terraced house at around £800 per month, attracting families with its amenities and schools.

Despite high demand, Matthews points out that limited property availability is driving rent inflation—some landlords are exiting the market, and fewer buy-to-let investors are expanding their portfolios.

Zoopla's Donnell attributes the overall rise in UK rents to stagnating supply, strong immigration, job market resilience, and returning students post-pandemic, which has pushed seekers towards more affordable towns.

A Save The Student survey reveals that high rents are straining 64% of student renters, with 20% in constant difficulty and some considering dropping out of university. Although rents may continue to rise, Donnell anticipates a slowdown.

With indications that some overpriced rentals are seeing price reductions, demand appears to be softening, as shown by Rightmove's reported decline in average enquiries per property.

Improvements in the Local Housing Allowance in the government's Autumn Statement offer some renter relief, but advocacy groups press for more support and a faster implementation of a ban on no-fault evictions in England.

For those looking to secure a rental, agents suggest starting the search early, signing up with several agents, having employment and rental references ready, building relationships with local agents, knowing your budget, and remaining alert for early property announcements on social media.