Local Rental market update six month update
The first half of this year saw an increase of rental properties to the market – According to Rightmove this was an increase of 12% Year on year (YOY). This was put down to the rush of buy to let properties coming on to the market from April 2016 to beat the increased stamp duty. This had a twofold impact on the market according to our analysis of Rightmove figures.
- Rental growth has slowed – The average rental in the East of England is now £895 up from £885 YOY an increase of 1.12%. This is still running higher than nationally (excluding London) which is £768 a YOY increase of 1.8%. Our own rents, however, have increased by an average of 3.2%.
- It has taken slightly longer to find a tenant – For east Anglia this now stands and 29 days and increase of 4 days from this time last year.
However, we have beat this trend as we have found tenants in 22 days – We believe that we have beaten the regional average as we have tried new proactive marketing part of this was to contact the data base more regularly which seems to have paid off.
How many people are looking for properties?
We found that applicant registrations were down by 6% in the first half of the year. This was due to low registrations in January which evened out in the next few months. We understand that this was a county wide issue which was caused by the proposed tenant fee ban therefore people possible didn’t move in January.
What were they looking for?
Applicants were looking to pay between £711 to £876 pcm and the minimum number of bedrooms requested can be shown below. The trend of 2 bedrooms being the most common request continues.
What happened in our area?
Rightmove has reported there were 650 lets in the area from 54 agents. With Maxine Lester’s having the largest chunk at 17.5% of the market – 114 lets
The hung parliament has not helped give the property market any more clarity, however we do know they will not be able to do anything controversial. We are still expecting the tenant fee ban to be made law as this was popular with both the Conservative and Labour parties.