We all know facts and figures are important, but they need to be relatable to you for them to be truly appreciated. For that reason, we bring you our stats on the Cambridge and Huntingdon Rental Market. So what did we find?
Applicant enquiries have remained static
Looking at the year on year figures, the number of applicants that are applying for the properties we advertise has remained largely the same. However, the main difference is that there are about 35% less properties on the market, which is changing people’s behaviour. We have seen less no shows, and once someone has decided on a property, we are seeing that they are providing far more detail about themselves. In some some cases we even get a sales pitch!
35% of our viewings were carried out virtually
As people become more relaxed about COVID we are seeing an increase in people wanting to view the property in person. The flip side to this is that we are still seeing some tenants in situ not wanting to let strangers in their home. Unfortunately, due to the market being so buoyant in person viewings are not always available. As a result, these people tend to lose out, which we understand causes great frustration. Whilst the number of properties available for rental is this low, I can’t see the situation changing.
Number of days to find a tenant reduced by 45%
This is a year-on-year comparison. However, we have seen this levelling if we compare our figures to what we achieved in September. So, if you are worried about re-letting your property this time of year, we would usually advise not completing on a new buy to let as the market usually begins to slow. We shall not be saying that this year as we are in totally new territory.
The best return on a purchase this month achieved a 5.9% gross
This was for a 1 bed apartment in St Ives with a tenant in situ. We are not just here to look after your investment. We’re always up to date with what’s going on in the market to be able to guide you when looking at your portfolio. However, the average to be achieved in this area is 4 – 5 %, but as you can see there are some gems out there.
Rents with tenants in situ have increased by 2.7% on average
This is a year-on-year comparison and does not consider the remarketing of properties as a tenants move on. As I have said before we are in new territory and are seeing increase in rents of £150 – £250 per month. However, I will point out this is on properties that have bathrooms and kitchens that are less than 10 years old and have been redecorated
But what is a fair rental?
As you can see from what is happening in the market, there are 2 schools of thought,
- If you have a tenant in situ
- Remarketing a property to a new tenant.
Dealing with a tenant in situ
Let’s be fair it’s been a tough 18 months for everyone, but the cost of living is very much on the increase. You could take the view that you have a stable tenant looking after your property so why rock the boat. You would also be right to think that salaries have increased and the demand for rental property is high. Therefore, you are not helping anyone by supressing the rental. With my landlord hat on I have always looked for a 3- 5% increase annually. This is because when it comes to replacing a boiler, I want to know that my rental income has kept pace with my market costs. As a company we review rents annually and due to inflation are now applying a 5% increase.
Remarketing a property to a new tenant
In this market that is a totally different kettle of fish, it is going to be dependent on the interior decoration. However, the demand is quite high now –the issue is we are looking at 35% less properties available to rent. For us the math is simple- we can give you an idea of who is looking for a particular type of property and what their budget is. This week we have rented out two three bed properties (both have been redecorated) and achieved a 20 and 25% increase on the rents we had achieved before. If you are going it alone have a look at what a 2-bed cluster is achieving and you may be able to gauge your property from that. The property market has changed very quickly so be aware it may slow down as quick.
What rental yield can I expect if I buy now?
Rental yield is the return you are likely to achieve on your investment. We can give you a very rough guide if the purchase is right. We take the expected yearly rental income of a property and divide it by the purchase price. In this area you would be looking at 4 – 5% on a freehold property. Ours is a very rough guide as we can’t take into consideration mortgage costs but it’s a good start.
Void periods stand at 10 days
This figure means the days between tenancies. It has increased from August where we saw an average of 8 days . This can be put down to more landlords redecorating in between tenancies. let’s be honest if I can achieve another £250 on my rental it is well worth it.
Want to be a part of these stats?
If you would like any assistance in finding the right rental property to get the best yield, just contact your local expert, honourable and personal letting agents on 01480 494939, or email [email protected]
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