Rise in Renters Choosing ‘Commuter Areas’ Over City Centres
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Demand For Commuter Towns in the UK Is Rising
New data has revealed a surge in demand for what are considered ‘commuter towns’, with rents in bigger cities falling in comparison. The data from flat-sharing website, SpareRoom, shows that the West Midlands towns of Solihull and Smethwick have seen a surge in demand, while average Birmingham rents fell for the fourth consecutive month.
So what is the reason behind this rise in commuter towns, and are there any towns in particular that UK investors should know about?
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Why Is Demand for Commuter Towns Growing?
Affordability is a big factor when considering why so many renters have chosen commuter towns in recent years. While rental properties in big cities offer the benefit of being within walking distance of business districts and lively bars, restaurants, and attractions, they often don’t come cheap.
Tenants looking for a high-quality rental property in the centre of a big city can often expect this quality to be reflected in the cost, with average rental prices of £2,625 in Central London as an example, according to data from Zoopla.
The fact that tenants who choose properties in less central areas can get more for their money is a big selling point and a reason behind this surge in demand for commuter areas.
Aside from the financial aspect, there has also been a general shift over recent years towards the quieter lifestyle that can often be found from living on the outskirts of a city. Since 2020, when remote and hybrid working became commonplace across UK businesses, living near the workplace has been less of a priority for many.
Living in smaller towns on the commuter belt to big cities offers renters the chance to enjoy access to more green spaces and proximity to the countryside, along with the benefit of lower rents.
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What Commuter Town Should North West Investors Consider?
For investors hoping to capitalise on this demand for commuter areas in the UK, there are some towns in particular that are gaining attention as hotspots for buy-to-let investment.
In the North West, Warrington is a popular commuter town that offers some huge benefits for investors and tenants alike. Ideally located between Manchester and Liverpool, those who live in Warrington are able to reach each of these major cities by train within half an hour or less.
Not only is Warrington perfectly placed for commuters working in Liverpool or Manchester, but the town itself also boasts a thriving business scene. The area has become a base for a range of leading businesses across industries such as technology, energy, manufacturing and logistics. This gives those who rent in Warrington the choice of travelling to a larger city for work or enjoying the opportunities available right on their doorstep.
A big selling point that’s driving demand for rental properties in Warrington is the cost of rents in the area. The average rental price in Warrington is currently £839 according to data from the Office of National Statistics. Compare this to Manchester’s average £1,310 rental price, and those who rent in Warrington are saving almost £500 a month.
For investors, an average property price of £239,000 gives an average rental yield of around 4.2% to those owning buy-to-let property in Warrington. Capital growth prospects are also high thanks to extensive regeneration in the area. Savills predicts average house price growth of 27.6% by 2030, while data from UK House Price Index shows that the average price for all property types in Warrington has grown by 29.7% since 2020.
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