Recent research highlights a surge in rents in commuter towns, driven by the increasing unaffordability of urban areas. As cities grapple with a growing affordability crisis, tenants are turning to commuter towns, where housing rents are also on the rise.
Soaring Rents in Commuter Towns Driven by Urban Affordability Crisis
The expense of securing a new rental property surged at a rate twice that of earnings in six British cities and towns during the past three years, as revealed by data from property website Zoopla provided to the BBC.
Simultaneously, locations within commuting distance of major cities have experienced some of the most significant upswings in rental prices.
Richard Donnell, Executive Director of Research at Zoopla, noted, “Rents have risen fastest in UK cities, but affordability pressures have pushed renters to seek better value for money in commuter towns where there are more homes for rent.
“Big cities have led the way on rental growth as demand rises in the face of static rental supply – we have the same number of rented homes as in 2016.
“Demand has been driven by the unaffordability of home ownership, the re-opening of the economy post-pandemic, strong jobs market, record student numbers and high immigration for study and work.
“The reality is that rents have risen as much as mortgage payments for those moving rented home after the average stay, but with no meaningful support for renters, unlike mortgagees.”
“Only increasing supply and getting more homes built across all tenures is the answer.”
Unveiling the Rental Surge and Affordability Challenges
In the last three years, rents in towns such as Bolton, Newport, and Bradford, all within a short journey from major cities, have surged by over a third, according to Zoopla data. For instance, the average cost of a rental property in Bolton escalated from £569 in December 2020 to £789 by December 2023, marking a significant 38.7% increase.
The rising cost of new lets in Bolton has surpassed Manchester, with rents increasing by 37.8% in three years, from £776 a month to £1,069. Bolton experienced the highest rent rise in the Zoopla survey last year, reaching 14.8%. Over the past three years, Bolton ranks second in the rate of rent growth among areas covered in the research.
Similarly, Newport, a 15-minute train ride from Cardiff, witnessed a surge in rents from an average of £653 to £878. Bradford, approximately a 20-minute train journey from Leeds, experienced a 33.8% increase in the cost of lets.
Zoopla's findings revealed that rents outpaced earnings in Glasgow, Bolton, Manchester, London, Edinburgh, and Wigan. However, the property website anticipates a slowdown in rent growth over the next year.
Richard Donnell, Executive Director of Research at Zoopla, emphasized the inadequate supply of homes, especially for those with mid to lower incomes, as a significant factor in rental inflation. He noted that while affordability factors are contributing to a slowing rental inflation, addressing the issue requires an increase in housing supply.