Landlord Property Insurance

Saffron Walden rental market knowledge vital!

Rents agreed on new tenancies have declined in all but three regions of the UK over the past month, HomeLet data shows. But locally, things cannot be decided by regional averages. The Saffron Walden rental market is a case in point.

 

The annual figures show a rise of 2.1% year-on-year during September, with only the south-east seeing a decline of 0.1%.

The HomeLet data comes one day after figures from Rightmove showed that declines in new asking price rents in London, the south-east and Yorkshire & Humberside had dragged down the national average on a quarterly basis across the UK.

Elsewhere, however, Rightmove – reporting on new asking prices, and not recently agreed prices – said advertised rent prices had gone up. This perhaps shows an unwillingness on behalf of some Landlords and indeed some Agents to deal with the market as it is, rather than as they would wish it to be.

According the Homelet, “It wouldn’t be surprising if landlords, seeing their own current and anticipated cost increases, seek to pass these costs on to tenants to preserve the returns from capital they have invested in residential property assets.

“Landlords are facing a deluge of higher costs from new regulation, taxation changes on buy-to-let mortgages and the prospect of a near-term rise in interest rates. There’s also the added uncertainty over the fall-out from the government’s intention to ban letting agents from charging up-front fees to tenants.”

“In a sector where demand for rental properties generally outstrips supply, most informed commentators suggest higher externally imposed costs on landlords will inevitably translate into higher rents to tenants”.

Steve Cass understands the logic of this but says that this is not happening on the ground in and around Saffron Walden. Here, there is a clear divide in the rental market now between the under £1,000pcm properties and those over. In simple terms, there is a lot of demand from tenants under £1,000pcm but the property has to be ‘perfect’ to have tenants squabbling over rental properties at higher monthly amounts. “You have to understand your local market, not look at national or even regional market averages. Importantly, you have to be professional enough to give clients correct advice in uncertain times even if you feel they won’t want to hear it.”

Steve continues, “In terms of the table below, Saffron Walden is on the border of the South East and East of England regions making it even more important not to blindly follow regional averages. Either way, you can see a fall is taking place, and there is no reason why this won’t continue until our political and economic future becomes clearer”.

How does your region fare?

Region Average rent in September 2017 Average rent in August 2017 Average rent in September 2016 Monthly variation Annual variation
Northern Ireland £636 £634 £610 0.3% 4.3%
West Midlands £692 £693 £666 -0.1% 3.9%
East Midlands £620 £617 £598 0.5% 3.7%
South West £814 £838 £787 -2.9% 3.4%
Scotland £628 £629 £613 -0.2% 2.4%
Yorkshire & Humberside £630 £630 £616 0.0% 2.3%
North West £697 £703 £683 -0.9% 2.0%
North East £529 £538 £519 -1.7% 1.9%
Greater London £1,593 £1,609 £1,563 -1.0% 1.9%
Wales £617 £626 £606 -1.4% 1.8%
East of England £914 £926 £898 -1.3% 1.8%
South East £1,001 £1,028 £1,002 -2.6% -0.1%
UK £927 £939 £908 -1.3% 2.1%
UK excluding Greater London £766 £776 £749 -1.3% 2.3%
Notes:

 

Based on new tenancies in September 2017 Based on new tenancies in August 2017 Based on new tenancies in September 2016 Comparison of average rent in September 2017 and August 2017 Comparison of average rent in September 2017 and September 2016
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