- By Kevin Peachey
- Cost of residing correspondent
Image supply, Getty Images
Towns inside commuting distance of main cities have seen some of the most important lease rises of the final three years, new analysis suggests.
The price of new lets rose by greater than a 3rd in areas such as Bolton and Newport between 2020 and 2023, property portal Zoopla mentioned.
Although Glasgow, London, Manchester and Edinburgh additionally noticed huge rises, new working patterns have made an impression.
Working from residence has allowed some to lease greater locations farther from cities.
“They may only go into the office two or three times a week and, if they are in a flat, may have looked for a bit more room,” mentioned Richard Donnell, Zoopla’s government director of analysis.
Agents mentioned there had been “staggering” ranges of competitors in areas with simple transport entry to larger cities.
The Zoopla figures, compiled for the BBC, tracked the rise in rents for folks on the lookout for someplace new to let in 65 cities and enormous towns in the UK. Six of the 10 greatest will increase had been in areas with comparatively quick access to the key cities of London, Leeds and Cardiff.
They included Wigan, Newport, Bradford, Rochdale and Luton.
But they had been led by Bolton, the place:
- Rents for brand new lets had been up practically 39% in the three years to the tip of 2023
- The rise of practically 15% final yr alone was the most important of any space on the listing
- Rents had gone up twice as quick as earnings in the final three years (as they did in Glasgow, Manchester, London, Edinburgh and Wigan)
“There have been multiple offers on every single property,” mentioned Stuart Matthews, managing director at Miller Metcalfe property and lettings agent, based mostly in Bolton.
“The price can be put up by £100 a month, and it still goes.”
Having been in the enterprise for 23 years, he described the final 18 months as “staggering” and in contrast to another time he knew.
One attraction of Bolton is that the typical lease for a brand new let continues to be decrease than the neighbouring areas of Rochdale, Warrington, and Manchester (which incorporates Bury and Oldham in Zoopla’s calculations).
“You get a lot more for your money in Bolton than you do in central Manchester – like a house instead of a flat,” mentioned Mr Matthews.
A two-bedroom terraced residence sometimes prices about £800 a month to lease, he mentioned. It was a draw for households, alongside procuring and faculties.
Some renters may match in Manchester so commute or mix with working from residence, and Bolton has transport hyperlinks into central Manchester.
Although demand had been excessive, Mr Matthews mentioned, the dearth of obtainable properties was a good greater issue. Some landlords had left the sector, whereas buy-to-let buyers weren’t taking up as many properties.
This lack of provide has been key to hovering rents throughout the UK.
The quantity of rented houses had barely modified since 2016, based on Mr Donnell from Zoopla, failing to maintain tempo with distinctive demand in the final couple of years.
He mentioned that immigration, a comparatively sturdy jobs market and the return of college students for the reason that pandemic had led to demand in cities, prompting some tenants to look additional afield.
Constant wrestle
A latest survey by the web site Save The Student discovered its customers had been discovering excessive lease ranges powerful to deal with.
Among the scholars who paid lease, 64% mentioned they struggled with the fee at the least some of the time, together with 20% who described it as a relentless wrestle.
Two in 5 mentioned that they had considered dropping out of college as a result of price of lease.
Although rents are anticipated to maintain rising, tenants ought to see the tempo of development fall fairly sharply in the approaching yr, based on Mr Donnell.
He mentioned there was a hazard that some rents had been being set past reasonably priced ranges, and there have been indicators of some rents being lowered on listings after failing to safe a tenant at a better worth.
Another property portal, Rightmove, additionally mentioned there was a median of 15 enquiries for each obtainable rental property in the beginning of this yr, down from 20 a yr earlier and the bottom queue to view since 2021.
The assist supplied by the advantages system to non-public renters by Local Housing Allowance charges was improved in Chancellor Jeremy Hunt’s Autumn Statement.
How you may get to the entrance of the renting queue
Agents say there are some easy methods to make it simpler to safe a rental property, together with:
- Start looking out nicely earlier than a tenancy ends and enroll with a number of brokers
- Have payslips, a job reference, and a reference from a earlier landlord at hand
- Build up a relationship with brokers in the world, however be ready to widen your search
- Be certain of your finances and calculate how a lot you possibly can supply upfront
- Be conscious that some brokers supply sneak peeks of properties on social media earlier than itemizing them
There are extra ideas right here and assist in your renting rights right here.
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