Rental Trends

Landlords have to take the rough with the smooth

It can be tough to be a landlord. Quite often you have difficult tenants, disruptive tenants or tenants that don’t pay their rent. And then there are changes in legislation and regulations to get your head round as well! If you’re lucky, you will have long-term tenants that look after the property, pay their rent promptly and are a delight to deal with.

There are times when it is a struggle to ensure that income surpasses expenditure, so when there is good news, landlords deserve to uncork the bottle and have a bit of a celebration. Right now is a time to appreciate — it may not last forever!

This key statistic should bring a smile to your face: rents are 40% higher now than they were ten years ago, but mortgage payments have risen only 13%. This is really good news for landlords.

Asking rents in our local area are on average about 10% higher than they were just a year ago ( depending on whether it is a flat or house, a town location or village location). In fact, asking rents outside London are rising at the highest annual rate ever recorded by Rightmove in their 16 years of reporting.

Why is this? Mainly it is due to a shortage of properties for rent at a time when there is high demand for them. A combination of strong demand and short supply always leads to higher prices.

While mortgage rates are likely to rise over the next year, to a certain extent at least, and there will inevitably be changes in regulations to deal with, the rental market looks buoyant for the foreseeable future. Enjoy it while it lasts.

 

 

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