Immediately I wished to speak about what’s driving rental costs. As letting brokers we regularly get blamed for the rise of rents. Persons are struggling, householders and tenants alike with rising prices linked to inflation and rates of interest and plenty of surprise when and the place will all of it finish.
As an moral letting agent, we have now to steadiness this. Landlords have rising prices however equally many tenants are feeling the pinch. Most rental properties nonetheless obtain over 25 purposes and purposes come from all walks of life, with completely different backgrounds and completely different circumstances. Demand continues to be outstripping provide.
As a accountable agent, we have now to make sure affordability checks, none of us desires to place anybody into debt and we additionally need to verify home suitability – for instance we as soon as had a household of 4 apply to hire a 1 mattress house.
The issue the Uk is at the moment dealing with, Lancaster and Morecambe included is a scarcity of properties. Within the very best world of many, the federal government ought to construct these houses, in any case, housing is a fundamental want, nevertheless till one thing drastic occurs, our property scarcity appears to be like set to proceed.
In comparison with many elements of the nation, Lancaster and Morecambe are nonetheless reasonably priced areas to hire. The typical hire within the northwest is now £1067, while nearer to house it’s £791.
Listed here are some regarding info…
- Virtually one in six rental transactions in 2023 have been agreed at above the asking hire, in comparison with lower than one in 15 in 2019.
- The state of affairs is most marked in London, the place 30% of leases agreed this 12 months had been above the asking value
- Within the wider South East, 14% of recent leases had been settled above asking rents and greater than 10% in 4 different UK areas: East of England; North West; South West and Yorkshire & Humber.
- Demand for rental properties has been outpacing provide because the pandemic throughout a lot of the UK. Common month-to-month rents have risen 41% since 2019 – in comparison with home value progress over the identical interval of 25%.
I wished to share this knowledge so everybody understands the state of affairs within the rental market. At JDG we are going to proceed to attempt to steadiness out this rising drawback of rental costs v affordability.
Thanks for studying and you probably have any questions, please simply get in contact.