Credit: The Lead
Boltons’s Rental Crisis: Government Underinvestment Amplifies Affordability Woes
Cardwells Estate Agents sheds light on the dire situation plaguing Bolton’s rental market, exacerbated by a staggering 14 years of government underinvestment in housing. Yasmin Qureshi, MP for Bolton South East, declares the situation a “Bolton rent crisis,” stressing the urgent need for attention. The latest figures compiled by property website Zoopla for the BBC paint a grim picture, revealing Bolton’s rents skyrocketed by 15 per cent last year, surpassing increases in Manchester, London, and Edinburgh. Over the span of 2020 to 2023, rents soared by 38.7 per cent, positioning Bolton as second only to Glasgow in terms of rental escalation. Richard Donnell, executive director of research at Zoopla, attributes this dramatic surge to Bolton’s status as a commuter town for Manchester, exacerbated by the shift to remote work allowing city workers to seek housing further afield.
The housing crisis in Bolton is underscored by the alarming rate at which rents outpace earnings. In just three years, rents have outstripped earnings growth twofold, with the average monthly let spiking from £569 in December 2020 to £789 in December 2023. Despite the rapid rate of increase, Bolton’s rental costs remain relatively lower than those in Manchester, where the average rental stood at £1,069 in December 2023. Andrew Cardwell, managing director of Cardwell’s Estate Agents in Bolton, acknowledges the upward trend in rental prices but asserts that Bolton still offers good value for money compared to its neighboring city. He notes that renters in Bolton often find they can secure more spacious accommodations for their money compared to nearby areas.
An Insight into Bolton’s Skyrocketing Rent Rates and Implications
Qureshi, while acknowledging Bolton’s appeal as a commuter hub, stresses the need for a balanced approach to development, advocating for the town’s autonomy and sustainable growth. She highlights the detrimental impact of government policies, particularly referencing Liz Truss’s mini-budget and its adverse effects on buy-to-let mortgages. Qureshi laments the surge in Section 21 no-fault evictions, exacerbating the housing crisis by reducing rental supply. She calls upon the government to fulfill its promise to ban Section 21 notices, emphasizing its crucial role in resolving the rental affordability conundrum.
Both Qureshi and Cardwell identify increased mortgage rates as a significant factor driving rental demand. Cardwell notes a concerning trend of landlords withdrawing from the private rented sector due to heightened financial pressures, leading to a dwindling supply of rental properties. Donnell emphasizes the urgent need for increased housing construction, particularly for mid to lower-income earners, to alleviate the housing shortage and temper escalating rental costs. With over 19,000 people languishing on Bolton Council’s waiting list and an average wait of 18 months for three-bedroom properties, the need for robust government intervention in social housing and market regulation has never been more pressing, as echoed by Qureshi.
