In recent years, areas within commuting distance of major cities in the UK have experienced significant rent increases, reports Zoopla. According to data collected between 2020 and 2023, the cost of new lets surged by more than a third in cities such as Bolton, Newport, and Bradford. This trend has been attributed to the shift towards remote work, prompting individuals to seek larger rental properties away from urban centres.
Richard Donnell, Executive Director of Research at Zoopla, explains, "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." This change in lifestyle preferences has fueled the demand for spacious accommodations in suburban areas.
The analysis for the BBC examined rental trends in 65 cities and large towns across the UK. Six of the top 10 cities with the largest rent increases were located within easy commuting distance of major hubs such as London, Leeds, and Cardiff. Notable areas include Wigan, Newport, Bradford, Rochdale, and Luton. However, the standout performer was Bolton, where rents for new lets soared by nearly 39% over three years, with a significant increase of almost 15% in 2023 alone.
Despite the surge in demand, the supply of rental properties has remained relatively stagnant since 2016, failing to keep up with the exceptional demand witnessed in recent years. Donnell attributes this imbalance to factors such as immigration, a robust job market, and the return of students following the pandemic, all contributing to the demand for city flats and prompting tenants to explore options further afield.
While rents are projected to continue their upward trajectory, Donnell anticipates a significant slowdown in the pace of growth in the coming year. Already, there are indications of over-ambitious asking rents being adjusted downwards on rental portals. This suggests a potential stabilization in rental prices as the market adjusts to changing dynamics.
As the work landscape continues to evolve, with more individuals embracing remote and hybrid work models, the demand for rental properties in commutable suburbs is expected to remain robust. This presents opportunities for landlords and tenants alike, with a diverse range of properties catering to evolving lifestyle preferences and work arrangements.