Commuter Towns See Soaring Rental Demand

Recent research by SpareRoom highlights a significant increase in rental demand in commuter towns across the UK, driven by rising city rents that are pushing renters to seek more affordable housing options outside urban centres. Notably, Esher in Surrey has experienced a 32% year-on-year increase in demand, now recording the highest rental search ratio in the UK with 11.2 people competing for every available room.

Similarly, Kilmarnock in Scotland has seen flatshare demand double in the past year, with seven people searching per room. The average monthly rent in Kilmarnock was £588 in 2025, offering renters savings of over £1,000 annually compared to Glasgow, where average rents reached £683 per month.

Rising Demand Extends to Other Commuter Towns

Other towns near Glasgow, including Motherwell and Paisley, have also witnessed substantial demand growth, increasing by 33% and 16% respectively. In the Liverpool area, towns such as Birkenhead and Widnes have seen demand rise by 33% and 22%, with Widnes now ranking third nationally for rental competition at 10.2 people per room.

The Midlands region is also experiencing strong rental demand in towns like West Bromwich, Halesowen, Smethwick, Kidderminster, and Sutton Coldfield, with West Bromwich leading at 10.5 people per room.

Affordability Challenges and Market Implications

Matt Hutchinson, director of SpareRoom, warns that the migration of renters to commuter towns is likely to drive rents higher in these areas, potentially eroding their affordability advantage. He states: “When even flatsharers are turning away from major cities, you know there’s a huge problem with affordability. More renters migrating to cheaper towns puts upward pressure on rents. These towns won’t be affordable much longer and then where do people go?”

Hutchinson also highlights the broader economic impact, noting that a lack of affordable housing options could limit workforce flexibility and hinder people’s ability to take up new job opportunities.

Surging City Rents Fuel the Shift

The report reveals that rents in cities such as Liverpool have surged by 40% over the past five years, reaching record highs of £555 per month by the end of 2025. This increase is a key factor driving renters to seek accommodation in surrounding commuter towns where rents remain comparatively lower, although rising demand threatens to change this dynamic.

What This Means for Landlords and Agents

For landlords and letting agents, the rising demand in commuter towns presents both opportunities and challenges. Increased competition for rental properties can lead to higher rents and improved yields. However, it also requires careful management to maintain affordability and tenant satisfaction as market pressures intensify.

Landlords should monitor local market trends closely and consider the potential for rent increases in traditionally lower-cost areas. Agents may need to advise clients on the changing dynamics and the importance of balancing rental income with sustainable pricing to retain tenants.

Suggested internal link anchors

• rental demand
• commuter towns
• affordability challenges
• flatshare market
• rental price trends
• tenant migration
• letting agents
• private rented sector
• rental yields
• housing market pressures

TLA update

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