Good News for Inner City Landlords

Slower to recover from the impact of the pandemic, city centre landlords have had a challenging 18 months. However, new data reveals positive signs that anyone looking to invest needs to know.

Rightmove, the UK’s largest online real estate portal, has released interesting analytical data on rental prices, revealing double-digit growth in city centres during the third quarter of 2021.

Since February 2020, tenants in Bristol have seen a 12% rise in bills. Following that, Nottingham and Glasgow’s renters identified an 11% rise apiece!

Yet, Edinburgh’s average rent price has dropped by 5% in the same time period. Coventry falls close behind with a 2% reduction.

However, positively, London’s rent prices grew by 2.7%, the “first annual rise since before the pandemic started”, Rightmove stated.

In summary, rental prices in city centres have increased by 8.6% annually, excluding London. Rightmove reports this as the highest acceleration recorded in their 21 years of business.

Are you a landlord with flats in your portfolio? We have good news for you! Demand for flats has risen by 95% since September 2020. And for houses? A smaller but respectable 37% rise. Overall, demand for four and three-bedroom flats has increased by 131% and 124%, respectively.

“A year of various lockdowns saw many city centres hit with either a complete standstill in rental growth or falls of over 10% in some cases, as tenants moved further out or back in with family temporarily.” Said Rightmove’s director of property, Tim Bannister.

“But as society opened again, cities have not only bounced back but are now seeing strong rental growth, fuelled by increased tenant demand and limited available stock. It’s still easier to secure a place in a city centre than in some of the hottest suburban and rural rental markets right now, but as more tenant’s boomerang back to busier locations, this is likely to change.

“Demand is notably up in London compared with this time last year, another sign that people are reconsidering where they want to live.”

With extraordinary-low buy to let mortgage rates, strong demand for rental properties in city centres and property prices set to rise, now is an opportune time to invest in your next buy to let.

To talk through your investment plans, call me, Charlie Potter, on 01732 471648 or email me, cpotter@mortgagesforbusiness.co.uk.

 

Source: Rightmove.

NB: ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

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