Towns near major cities are experiencing significant rent hikes, according to recent research. Over the past three years, areas like Bolton and Newport have witnessed a more than 3
0% increase in rental costs for new leases, as per findings from property portal Zoopla.
This surge in rents isn't exclusive to these towns; cities like Glasgow, London, Manchester, and Edinburgh have also seen substantial rises. The shift to remote work has played a role, enabling individuals to seek larger accommodations farther from city centers.
Richard Donnell, Zoopla's executive director of research, noted that the flexibility of remote work has prompted many to opt for more spacious living arrangements, especially if they only need to commute to the office a few times a week.
With convenient transportation links to major cities, towns have become hotspots for renters, resulting in intense competition for available properties. Stuart Matthews, managing director at Miller Metcalfe estate and lettings agent in Bolton, described the level of competition as "staggering," with multiple offers on every property.
Bolton stands out as one of the most affected areas:
-Rent for new leases increased by almost 39% between 2020 and 2023.
-Last year alone, rents surged by nearly 15%, the highest among the areas analyzed.
-Rents rose twice as fast as earnings over the past three years.
Despite the soaring rents, Bolton remains comparatively affordable, attracting families with its lower rental costs compared to neighboring areas like Manchester.
However, the lack of available properties exacerbates the situation. Some landlords have exited the market, and buy-to-let investors are less inclined to invest, further restricting the supply of rental homes.
This scarcity of rental properties has been a driving force behind the nationwide surge in rents. Since 2016, the number of rented homes has remained relatively unchanged, failing to keep up with the growing demand.
The affordability crisis isn't limited to renters in towns; students, in particular, are feeling the strain. A survey by Save The Student revealed that a significant portion of students struggle with high rent costs, with some considering dropping out of university as a result.
While rents are projected to continue rising, the pace of growth is expected to slow in the coming year. There are indications that some rents are being set at unsustainable levels, prompting landlords to lower prices after failing to secure tenants.
Campaigners are calling for additional support for renters, including an acceleration of proposed measures to ban no-fault evictions in England. Despite recent improvements in benefits for private renters, more assistance may be necessary to alleviate the rental burden on tenants.