Rental supply crisis hits towns as cities prove too costly

Rental supply crisis hits towns as cities prove too costly


Todays other news
The Property Franchise Group (TPFG) has labelled the latest landlord...
Tenants are spending an average of 39% of their income...
Deposit alternative provider Reposit has partnered with seven letting agency...
Carvers has expanded its town centre office in Darlington....
Rental supply crisis hits towns as cities prove too costly

The UK’s rental supply crisis is now most acute in towns as more renters are priced out of cities, according to Q2 2025 research by  flat-share site, SpareRoom.

Sale, near Manchester, is seeing the fiercest competition among flat-sharers in the whole of the UK, with 8.9 people searching for every room available. The average room rent here is £637 per month, compared to £689 per month in Manchester – a saving of £624 a year.

Second in demand is West Midlands market town Oldbury, linked to Birmingham by a 12-minute train, but where rents – at £531 per month – are £984 per year cheaper than rents in Birmingham (£631pm).

The Merseyside town of Bootle is the cheapest place to rent in the whole of the UK at £456 per month, and it’s seeing huge demand among renters with 8.6 people searching per room available. 

Being driven further out

Those priced out of inner London are driving demand in Twickenham and Aldershot in Surrey where demand is around eight people searching per room available. 

Only two cities appear on the list of the highest-demand areas of the UK among renters, further evidence that renting has become so unaffordable in cities, even flat-sharers are being driven further out. Demand has more than doubled since 2019 in Oldbury, Aldershot, Paisley, Sutton Coldfield, and Solihull.

However, some towns may soon become unaffordable to flat-sharers, too. Compare rent increases since 2019 in these highest-demand towns against the average for the whole of the UK (30%) and most have seen higher-than-average rises, with increases in Cannock (69%), St. Helens (65%), and Salford (60%) the highest, and more than double the UK average rent rise.

The table below shows the top ten most in-demand areas of the UK among renters, where more than five people were looking per room available to rent in Q2 2025:

Zoom out and rental supply across the UK is rising, driven largely by ads – placed by both landlords and agents, and by lodger landlords – for rentals outside of Greater London. However, supply could be impacted by landlords reacting to the Renters’ Rights Bill which begins its final stage in the House of Lords Monday.

Matt Hutchinson, director of SpareRoom, 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. 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?”

Share this article ...

Join the conversation: Login and have your say

Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions. All comments are screened using specialist software and may be reviewed by our editorial team before publication. Letting Agent Today reserves the right to edit, withhold or delete comments that violate our guidelines, including those that harass, degrade, or intimidate others. Users who post such content may be banned from commenting.
By commenting, you agree to our Commenting Terms of Use.
Recommended for you
Related Articles
Rent spelled out in blocks
The Property Franchise Group (TPFG) has labelled the latest landlord...
BTL landlords leaving PRS to hit 93,000 this year, says broker survey
A new online portal has been launched to bring empty...
Agents back bid to woo institutional rental investors 
Renters are ready to embrace Co-Living, with a preference towards...
Shock fall in new rents but tenants pay more to renew
Lloyds says affordability for buyers is at its most favourable...
It was thought at one stage that the Bill would...
It appears Knight Frank was involved at one stage...
Recommended for you
Latest Features
The Property Franchise Group (TPFG) has labelled the latest landlord...
Tenants are spending an average of 39% of their income...
Sponsored Content

Send to a friend

In order to send this article to a friend you must first login. Click on the button below to login or sign up.