New figures have revealed how private renters and homeowners in Bolton were affected by inflation and increased interest rates last year.

Analysis by the Office for National Statistics show an estimated seven per cent of private renters in Bolton were affected by rising rental costs.

Of those affected, the average monthly rent increased from £644 before 2023, to £724 last year.

The figures show the increased cost accounted for 29 per cent of these renters' household disposable income.

Housing costs have increased since 2022 amid rising inflation and higher interest rates.

In the year to October 2022, inflation reached a 40-year-high. In response, the Bank of England's Monetary Policy Committee gradually raised the Bank Rate from 0.1 per cent to 5.25 per cent between winter 2021 and summer 2023.

By the end of 2023, more than a third of those responsible for rent or mortgage payments in Great Britain were struggling to afford them, according to the ONS Opinions and Lifestyle survey.

The ONS analysis also shows 14 per cent of homeowners in Bolton were re-mortgaging in 2023.

The average monthly repayments went up by £119, from £553 before last year to £672 in 2023.

Overall, the increased cost took up 26 per cent of their household disposable income.

Andrew Cardwell, managing director at Cardwells Estate Agents said: “The 40 year high point of inflation levels has affected everyone, tenants, landlords, owner occupiers, everyone not just in Bolton but all across the UK.  

“The cost of living crises has put financial pressure on people, and it has been a difficult time for many in our community.

“Specifically with regards to an increase in rental prices, this has been seen all over Greater Manchester and Bolton is no different, partly this has been buoyed by many landlords stepping away from the business model due to taxation changes, so there has been a reduction in the supply of rental property to the Bolton market.

“Though of course it must be remembered that landlords and home owners with a mortgage have also likely had increased property related costs as interests rates have risen and are currently at a high water mark point.

“There is a number of “green shoots” though as the most recent published inflation figures were down to 3.20 per cent in comparison from the 10.10 per cent this time last year and it is expected that interest rates will fall as we move through 2024.

“Hopefully the financial circumstances will improve for everyone soon.”

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StepChange, a charity and debt advice service, said rising housing costs have been a "major driver" of the cost-of-living crisis.

Simon Trevethick, head of communication, said: "Repeated interest rate rises have pushed mortgage payments up for hundreds of thousands of people and rents have risen to record levels both inside and outside of major cities, as private renters especially feel the pinch.

"We want to see the Government supporting households facing increased costs. We have long called for an end to section 21 no fault evictions, as well as a tenancy support scheme ahead of evictions as a last resort."

He added the Mortgage Charter, brought in by the Government last year to help people with sudden increases in mortgage costs, is coming to an end in July.

"The Government should reassess removing help for mortgage borrowers to ensure there isn’t a cliff edge for those coming off their fixed term deals later in the year," he said.

The ONS assigned each area an "exposure score" relative to other local authorities based on the proportion of households affected by rising costs and how much the increased cost took from household disposable income.

Rent and mortgages in Bolton were both scored a three out of seven, meaning they were at medium exposure to rising costs.

A Government spokesperson said: "Our landmark Renters Reform Bill is progressing through Parliament and will give tenants more security in their homes.

"We recognise the cost-of-living pressures tenants are facing, which is why we are providing a £108 billion cost of living support package over 2022-2025 – worth an average £3,800 per household."

They added a new Private Rented Sector Landlord Ombudsman will be introduced so private tenants can escalate complaints if they are unhappy with the service they receive from their landlord.

If you have a story or something you would like to highlight in the community, please email me at chloe.wilson@newsquest.co.uk or DM me on X @chloewjourno.