Our regional update this month focuses on:
- Overview of the market
- How the market’s changes are affecting behaviour
- Comparisons on the rental values between PE27, PE28, PE29 CB23 and CB24
- What homes have seen the biggest rental yields year-on-year
Rental market overview
During November, Rightmove reports that there were 160 properties let in the areas we cover, via 37 offices.
Again, very happy to report a very buoyant rental market. The supply/demand ratio has not changed in November however we are starting to see more affordability issues. This means we are seeing people applying for properties above the 30% of salary level that we need to prove affordability for referencing purposes. If this continues, we shall start to look at using guarantors (if you, the landlord, are happy with this principle).
In November 2023 we marketed and average of 19 properties per week and received 777 enquires.
For those properties checking-in in November, it took an average of 10 days to find a new resident on an average rental of £1,000 and below 23 days on an average rental of £1,001 – £1,500 and 27 days on an average rental of £1,501- £2,500
To say it is really difficult for someone looking to rent is an understatement
Rental comparisons PE27, PE28, PE29, CB23 and CB24
You know we love a database and by having this type of detail, we are best placed to give you the right guidance when looking at rental reviews and when you are considering extending your portfolio.
These average figures come from our records. Therefore, they are a mixture of the rent reviews that have been put in place over the last year. Plus, the rental figure achieved at the point of remarketing, and are split by the number of bedrooms.
Which areas have the highest year on year increase by number of bedrooms?
Last month a one bed in CB23 gained the highest year on year growth this month it is PE27 with a 16% increase. The reason for the fluctuation is very much dependant on where properties come on to the market. Since most owners will decide to improve the property in some way at the remarketing stage. We are able to achieve a higher rental than when considering a rental review with a resident in place.
What we all know is that higher rents can be achieved the nearer you are to Cambridge. However, when you get to the bigger properties the US market (and budget) kicks in.
From the statistics we are receiving from our referencing provider, people seem to be a bit cautious when taking a rental property. For example, we want to make sure that no more than 30% of the household income is spent on rental. Our rental provider is telling us that people are keeping to an average of 26%.
What are we seeing in prospective tenants’ behaviour?
Sadly even though it is very hard to find a property we still have around 15% of people that don’t turn up to a viewing. Reasons range from…’I was just about to call you’ to ‘I have gone down with an infectious disease.’ So apologies if you were expecting viewings at your property which did not take place and the fact that we might sound a bit cynical when people give us reasons for not turning up.
The main difference we are finding is that regardless of advertising the household income required to rent a property. People are applying for properties that are way beyond their affordability.
What return can I expect?
As I have said many times before this is very much down to when you bought the property.
The average gross rental yield that we can see in November for our landlords is between 5.6% to 28.2 %.
To see a return of 28.2 % means that you have been working with us for 10 plus years so not only have seen the capital asset improve but as long as you review the rent on a regular basis you will see your return increase.
If you want to hear about other figures in Cambridgeshire just ask – we have tons of data!
Download our data
Extending your portfolio?
If you are looking to extend your portfolio, I would say now is a good time to see what is out there as prices seem to be in the doldrums.
If you would like to book a free exploratory chat with me just click here!