Rental prices are constantly in flux, and latest research by Countrywide shows that rent figures are on the rise, with average figures increasing from 1.1% to 2.2% between June and July.
That rise brings to an end eight months of falling rental prices, going on what’s happening in the capital, where Countrywide’s figures focus.
There’s a key reason why this has happened, too, and it’s all rooted in the change to tax rates from last year.
Countrywide cites a drop in supply, after fewer landlords were snapping up properties in the face of stamp duty rates – which were increased last year by 3% for people buying second homes, such as buy-to-let investors.
Johnny Morris, research director at Countrywide, said: “The rush to beat higher stamp duty rates in April 2016 caused a spike in the number of homes to rent, but that has now worked its way through the market.
“The stock of homes to rent is now falling in the more expensive parts of the country because higher tax rates have dissuaded large numbers of landlords from buying. Ultimately this means fewer homes on the market and higher rents.
“Here the number of homes on the market remains up on last year, buoyed by investors living in London and the South East choosing to buy in the Midlands and the North.”
What does this mean for us in Medway? From what I see in my personal experience, rents have remained pretty stable across the local Towns for standard-market rental properties.
When it comes to quality HMOs in the local market, though, there is a definite increase in what people are willing to pay for accommodation, as more professionals seek a place to live that meets their needs.
I have recently worked on such a property on Brandon Street in Gravesend, near to the station, between Darnley Street and Arthur Street. It’s a six-bed HMO that’s generating £3,225 per month for our landlord. You can see a video of me giving a tour of the property over on my LinkedIn feed by following this link.
Ultimately rental prices are a matter of supply and demand, and for the foreseeable future there will be a definite demand in Medway and nearby areas for people looking to find places to live – so putting your mark on the local market is certainly worth doing sooner rather than later.
If you want to discuss anything to do with property or the local market, or need advice on a investment, make sure to get in touch. You can reach me at firstname.lastname@example.org, or by phone on 07944 726676.