Rental Market Commentary September 2009

Download

The rental market continues to recover with rents starting to rise across the UK in areas where demand is outstripping supply. Rental stock has started to fall for three main reasons. Firstly the number of 'accidental landlords' has fallen as sellers can now sell properties, so don't need to rent them out. Secondly fewer investors are buying due to the requirement for 25% deposits and because they can't buy at a discount and then immediately re-mortgage. Both of these 'new rules' for BTL mortgages has slowed down investors ability to purchase, so reducing rental stock. Finally, fewer new build are coming onto the market, so generally there are less properties to rent. As a result, if you are looking to rent, it's best to tie down a deal NOW!

Regional Differences
As always with property, 'UK averages' rarely help you understand what's actually happening in your area. And the FindaProperty Index shows this to be true with:-

Top Performing Areas
North East England Rental Income +1% yoy, average of £614 per month giving a 4.8% average yield
Yorkshire and Humber Rental Income -1.8% yoy, average of £591 per month giving a 4.3% average yield

Poor Performing Areas 
North West England Rental Income - 9.3% yoy, average of £607 per month giving a 4.54% average yield
East of England Rental Income - 6.2% yoy, average of £755 per month giving a 4.21% average yield

Belvoir Lettings Regional Lettings Index
Belvoir is one of the top franchised letting agents in the UK and takes pride in ensuring they let quality properties legally and at fair prices. They have over 140 offices across the UK and kindly let us have access to their national and regional lettings index:-

The following figures show the South East has been quick to recover from rental falls while London has suffered due to excess stock from accidential landlords.

Interestingly, areas such as the South West, North East and Scotland have suffered little from price falls and are likely in the next quarter to show a quick recovery!

Belvoir Region

July 08 to 
Sept 08

Oct 08 to Dec 09Jan 09
to Mar 09
Apr 09
to Jun 09

London

-2%

-2.4%

-1.75%

 -5.51%

South East

6.9%

-2.8%

-4%

 +1%

South West

-1.4%

-1.0%

-3.6%

 -1%

West Midlands

0.6%

-0.8%

+4%

 -2.55%

East Midlands

1.6%

-2.6%

-2%

 -3.32%

East Anglia

-1.9%

-1.0%

+2%

 -3.98%

Yorkshire

2.9%

1.9%

+2.9%

 -3.57%

North West

1%

-0.5%

-2.7%

 -3.05%

North East

0%

0%

-0.75%

 -1%

Scotland

17%

-3.8%

-0.4%

 -1.36%

Whole of UK

0%

-1.4%

-1.95%

 -1.5%

 

 

Free Property Articles

  Call for Managing Agents to work closer with Solicitors and Surveyors
  When and How you should Sell your Property Investments
  Why you Should Diversify your Property Investments
  What should you do differently in the current economic climate?
  First time property investor: Where do you start?
 
NALS Conference Chair 2016

Kate's Consumer Portal

Propertychecklists.co.uk

FREE Buy to Let eBooks

Download a copy of our
Buy to Let Show eBooks
for FREEsimply click on
the image below

Buy to Let Show - download our Buy to Let eBook for FREE