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Rental Market Update for December 2010

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For many places outside of London and Southern 'hotspots', rental incomes started to stagnate a little as deals were done to get tenants in before Xmas and avoid voids over the cold period.

The biggest problem for landlords, tenants and letting agents however were not the usual disputes, voids or rental changes, but the snow! The massive cold snap revealed a series of problems in the lettings industry, causing everyone to be reminded of the importance of maintaining a property well and being aware of the flaws of new boilers and new build pipework!

Problems for Landlords and Letting Agents
The key issues for everyone was that tenants, many of whom are living on their own for the first time, really don't appreciate the time it takes to sort out maintenance problems. Plumbers and gas engineers across the country were maxed out, so just because the heating broke down, doesn't mean someone can turn up within an hour to fix it! Many tenants also over exaggerated the problems, demanding somewhat unfairly to be re-homed when there was just a bit of damp.

Problems for Tenants
For many, the sheer frustration and 'shock' of brand new boilers or new homes with pipes bursting hit hard and sent many people into a spin. Within Kate's family, she, her mum and sister ALL had problems with the boiler and burst pipes, despite boilers being pretty brand new. One of the issues that seems to be occuring is new build properties and new boilers have all heavily used plastic fittings which just fall apart after a few years and certainly plastic pipework doesn't seem to be able to survive the cold!

Over and above this, new condensing boilers that require an outside outlook caused havoc as many pipes hadn't been lagged, so just froze. So much for eco friendly being better in the long run! 

Rental Income and Stock
From a rental income perspective, things are great if you are a London landlord where prices are going up by 10% - and more! Tenants are really starting to feel the pinch, especially as few have saved enough to take advantage of property bargains that are starting to come through, even in London.

Winkworth reported their rental stock was 45% LESS than last year, suggesting a nightmare scenario for tenants (as rents rise and pay packets are squeezed) and for letting agents, as they fight for tiny amounts of new stock coming onto the market. Many estate agents that moved into lettings are likely to fail this year as the lettings business which has kept them going for now, vastly reduces.

Landlords however can pretty much sit back, enjoy low mortgage rates for those on good BTL mortgages, income rises and few voids. Don't be complacent though! Rather than pocketing the extra cash, it's vital you invest in your property to make sure any problems caused by the big freeze are solved for the long term and that your property is well presented in order to secure the best tenants - and the best rents!

Kate Faulkner's Rental Advice!
If you are a tenant: Rent something very soon this year or you WILL struggle to find a rental property.
If you are a landlord: Enjoy the extra cash, make sure your portfolio is geared at 75% or less and maintain your property!
If you are a letting agent: Beware! Keep an eye on the competition and market yourself like mad to secure any new instructions.

Headline Statistics from Belvoir Lettings and FindaProperty
Latest December 2010 rental figures from Belvoir who have over 140+ offices across the UK show that in most areas, rents are static or rising, whereas in London and the South East, rents are going up anything between 5-10%.

READ MORE - Rental Market Quarterly Regional Statistics - Q4 2010

Belvoir Lettings' Rental Index December 2010

Key statistics

Jun 10

Jul 10

Aug 10

Sep 10

Oct 10

Nov 10

Dec 10

Average Rental Per Month 

£683

£682

£695

£700

£703

£676

£694

Key statistics

Oct 09

Nov 09

Dec 09

Jan 10

Feb 10

Mar 10

Apr 10

May 10

Average Rental Per Month 

£691

£684

£680

£685

£680

£680

£681

£682


FindaProperty - Rental Index Highlights

Key statistics

Q3 10

Average Rental Per Month 

£851

Average Rental Yield

4.69%

Key statistics

Oct 09

Nov 09

Dec 09

Jan 10

Feb 10

Mar 10

Apr 10

May 10**

Average Rental Per Month 

£830

£831

£820

£804

£814

£820

£826

£839

Average Rental Yield

4.53%

4.56%

4.52%

4.45%

4.5%

4.5%

4.54%

4.57%


** Note: This Index moved from a monthly to a quarterly index

Key statistics

Feb 09

Mar 09

Apr 09

May 09

Jun 09

Jul 09

Aug 09

Sep 09

Average Rental Per Month

£830

£827

£819

£819

£823

£825

£829

£829

Average Rental Yield

4.63%

4.65%

4.60%

4.56%

4.56%

4.55%

4.57%

4.56%



For more indepth rental market views, download Savills' Spotlight on Student Housing and the latest survey from the RICS and ARLA.

Links to useful Renting and Letting Reports

ARLA    RICS    RLA    NLA   

For more market commentary on a national or local level:-
Contact Kate Faulkner on 07974 750562 or 0845 838 1763. To read more about Kate, please visit ABOUT US, see Kate on video and for media appearances, contact:

Sylvia Tidy-Harris
STH Management                    
Tel  +44 (0) 1530 263221
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Fax: +44 (0) 1530 264018

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