New research indicates that towns located within commuting distance of major cities have experienced significant rent increases over the past three years. According to property portal Zoopla, areas such as Bolton and Newport saw new let costs rise by more than a third between 2020 and 2023. While Glasgow, London, Manchester, and Edinburgh also witnessed substantial rent hikes, changing work patterns played a role.
The ability to work from home has allowed some individuals to seek larger rentals farther from city centers. Richard Donnell, Zoopla’s executive director of research, noted that people working in flats may have looked for more spacious accommodations, especially if they only visit the office a few times a week.
Areas with easy transport access to major cities have seen intense competition. Zoopla’s figures, compiled for the BBC, tracked rent increases in 65 cities and large towns in the UK. Six of the top 10 increases were in locations with convenient access to London, Leeds, and Cardiff, including Wigan, Newport, Bradford, Rochdale, and Luton.
Bolton led the pack, with the following highlights:
- Nearly 39% rent increase for new lets from 2020 to 2023.
- A 15% rise in the last year alone, the highest on the list.
- Rents surged twice as fast as earnings over the three-year period.
Stuart Matthews, managing director at Miller Metcalfe estate and lettings agent in Bolton, described the past 18 months as “staggering” due to unprecedented levels of competition. The demand is fueled by factors such as affordable rents compared to neighboring areas, transportation links, and the appeal of larger properties.
Despite high demand, a scarcity of available properties plays a significant role. Some landlords have exited the market, and buy-to-let investors are not acquiring as many properties. This supply shortage has contributed to rising rents nationwide.
Zoopla’s Donnell pointed out that the number of rented homes has barely changed since 2016, failing to meet the exceptional demand in recent years. Immigration, a robust job market, and the return of students post-pandemic have driven demand in cities, prompting some tenants to explore areas outside city centers.
While rents are expected to continue rising, the pace of growth is anticipated to decline in the coming year. Concerns about affordability have emerged, with signs of some landlords reducing rents after failing to secure tenants at higher prices.
Rightmove reported a decrease in rental property inquiries, indicating a shift in the market dynamics. To secure a rental property, experts suggest starting the search well in advance, having necessary documentation ready, building relationships with local agents, understanding the budget, and staying updated on property listings through social media.
