Honourable and personal residential letting experts

11Oct Local Rental market update – September 2017

Local Rental market update – September 2017

Main Highlights

* PE27, 28, 29 area has seen an increase in rental of 2.2% since January, compared with a reduction of 2.5% in the CB 1- 5 area

* The number of properties on the rental market has fallen back to normal levels following a peak of last year.

* The number of people looking to rent has increased

*The length of the average tenancy is increasing.

* The number of landlords looking to exit the market has reduced.

 

Overall

We have found that rents have increased by 2.2% since January 2017. The year on year achievement has been 2.6% in the PE 27, 28 and 29. A higher proportion of this increase has come from renegotiated rents as tenants are choosing to stay longer in properties and Landlords are carrying out works during a tenancy as opposed to waiting for the new tenancy.

On the flip side we have seen a slowdown of rental achievement in the CB 1 – 5 since January 2017 now showing -2.5% and a reduction of- 2.7% over the last 12months .We suspect this reduction is due to the fact that Cambridge City Council have become more stringent on their requirements for HMO’s. Therefore landlords are looking to have fewer people in the property, thereby reducing the rental that can be achieved.

The first half of this year saw an increase of rental properties to the market in all areas that we work. This is probably due to the rush of buy to let properties which came on to the market from April 2016 to beat the increased stamp duty. This has now levelled out and we are seeing normal growth for this time of year.

The number of people looking to rent has increased by 9% year on year. However we are still finding that prospective tenants are choosing to view multiple properties before making a decision. One trend that has become quite apparent recently is that more tenants are looking to have white goods included in the property.  Rising property prices mean that more people have decided that renting a property is the only viable option.

We are happy to report that we are still beating the local average on days to find a tenant – Rightmove reports the average at 29 days. We achieved 21 days in August.

Rightmove has also reported that there were 134 lets in the month from 31 agents of which are in position 1. We held 15% of the market taking the largest share and increasing this from last month.

Interestingly this figures show that 20% less deals were agreed in comparison to August 2016. This bears out the feeling that tenants are choosing to stay in properties longer. Our average tenancy now stands at 21 months.

 

What next ……….

There has been a reduction in the negative press with regard to rental. But the tenant fee ban is an issue that looms for 2018 – we anticipate that this may come into force in April 2018. Having spoken to a number of our Landlords, the overriding feeling is that rents will increase. Therefore we are in the process of setting up workshops for our Landlords early in 2018 to show the impact. In reality the demand for this ban has been quite London centric where there are anecdotal stories of agents asking for an unrefundable fee to be pay in order to view a property! This is why all political parties support the ban and a majority of letting agents are calling for the lettings sector to be regulated.