Rental spotlight – regional update, March 2023
In this blog about the region’s rental update, we shall be looking at:
- Comparisons between the rental growth of PE27, PE28, and PE29
- What homes have seen the biggest rental yields year-on-year?
- How tenant behaviour is changing
Overall, the rental market is still extremely buoyant with an average increase in rental income of 6% year on year
March rental data
The main reason continues to be supply it is not matching demand. Rightmove indicates there are 31% less properties that were being marketed for rental. Also we can see that affordability is still there for people looking to rent. As a guide we gauge affordability by seeing if your prospective tenant earns 2.5 times the rental income. For example, if the rental is £950 per month from a referencing point of view, we are looking for a household income of £28,500.
From these graphs, we can see that the biggest year on year increase is in PE27 for four bedroom homes – which is the same as February. Again, this is due to lack of supply.
How the lack of supply is changing tenant behaviour
It will not surprise you that once a property goes on the market it is very quickly snapped up. However, because competition is so strong people are agreeing to take several properties with different agents. Since we are only allowed to take the equivalent of a week’s rent (see tenant fee ban!) at the point of agreeing, there is very little cost to agreeing to take a property. We are keeping a close eye on this to make sure that your void period is not increased.
If you want to hear about other figures in Cambridgeshire just advise – we have tons of data!
