Rental crisis hits towns harder than cities

The UK’s private rented sector is under unprecedented strain, with suburban towns bearing the brunt of a growing shortage of homes to rent, data reveals.

According to SpareRoom, in places like Sale, Oldbury and Bootle, competition for rooms has reached critical levels, with nearly nine people vying for each available space.

This marks a stark shift, as towns now face fiercer demand than most cities, where only Salford and Inverness rank among the top areas with more than five renters per room.

The data highlights how escalating city rents are pushing flatsharers to more affordable towns, where supply struggles to keep up.

Renters priced out

Matt Hutchinson, a director of the platform, said: “Across the country, rental supply in the flatshare market is still rising but that doesn’t do justice to the picture in suburbia, which is groaning under the weight of demand from renters priced out of city living.

“When renters reach their ceiling of affordability, there isn’t really a choice, they have to move somewhere cheaper.”

He added: “The worry is that demand in these areas is now so high it’s inevitable prices will rise, until average rents are similar to those in the city they originally moved out of.

“And then where do renters go?”

Renter demand soars

SpareRoom says that Sale tops the list with 8.9 people chasing every room, despite its average rent of £637 per month being £624 cheaper annually than Manchester’s £689.

Oldbury, near Birmingham, follows closely with 8.8 renters per room and monthly rents of £531, saving £984 yearly compared to Birmingham’s £631.

Bootle, the UK’s cheapest rental spot at £456 per month, sees 8.6 people competing for each room, reflecting its appeal to budget-conscious tenants.

Since 2019, demand has surged in areas like Oldbury, Aldershot, Paisley, Sutton Coldfield and Solihull, doubling in some cases.

Rents are rising in towns

Rent increases in these towns often outpace the UK average of 30%, with Cannock (69%), St. Helens (65%) and Salford (60%) seeing the steepest rises, raising concerns about future affordability.

Close to London, Twickenham and Aldershot are experiencing intense pressure, with around eight renters per room.

Despite offering savings compared to central London, their rents, £951 and £683 respectively, reflect growing demand from those priced out of the capital.

Nationwide, rental supply is increasing, particularly outside Greater London, driven by listings from landlords, agents and lodger landlords.