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Graham Awards

TODAY'S OTHER NEWS

Rents booming in much of England and Wales away from London

Rents across much of England and Wales are performing strongly according to a new market analysis - and in some areas the annual increases are in double figures.

Home, a property listing website that monitors the lettings and sales markets, says there is a great scarcity of rental property available in most English regions and in Wales, thus forcing up rents in those places.

The largest annualised hikes are in the East Midlands - up 14.0 per cent - and the West Midlands, up 16.8 per cent.

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However, the national average is distorted by the situation in the capital, which is sharply in contrast to the rest of England and Wales.

“Greater London continues to indicate an oversupply in properties available to rent (up 37 per cent year-on-year). This worrying situation is already weighing heavy on the capital’s buy to let sales market and is likely to be exacerbated by the latest national lockdown” warns Home.

 

 

Doug Shephard, director of Home, says: “Oversupply is more acute in the London lettings market. Consequently, rents are collapsing in the more central London boroughs, slashed by landlords desperate to avoid painful void periods. 

“This situation is undermining the fundamentals of the central London sales market, since ultimately it is the yield on property that underpins its capital value. 

“Landlords in prime locations such as Westminster, Hammersmith & Fulham, Kensington & Chelsea and Islington have dropped asking rents by 34, 29, 28 and 25 per cent respectively. These are unprecedented falls and, judging by the continuing rate of decline, rents in central London are unlikely to stabilise anytime soon.

“Accelerated by the London exodus, rents and prices are climbing simultaneously throughout the rest of England and in Scotland and Wales. These markets, all underpinned by competitive lettings markets (low supply and rapidly rising rents), show extraordinary vigour and together they have boosted national average home price growth.”

  • George Dawes

    Huge amount of air bnb's in my area have flooded the market , at least i've got a 3 bed to fall back on , but the 1 beds are just a waste of space now ( quite literally )

  • Mark Wilson

    If rents are strong I cant see how it will last.

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    Lack of supply maybe ?

     
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    Government interference always pushes up rents.

     
    Mark Wilson

    Robert, I think you will see the opposite, rent controls are on their way.

     
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    Rent controls ensure rents go up as much as legally allowed, whereas most current rents stay level for good tenants. Bring it on!

    Look how "successful " capped energy charges have been.

    Look at how Ireland Scotland have fared after government interference with shortage of properties and soaring rents,

    Market forces always prevail.

     
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    I wouldn't say that rents are booming in Norwich but they would certainly seem to be increasing rather than decreasing .

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    I find myself agreeing with Mark on this one I tell it how it is. I have been saying for so long there is a glut of Rental Property especially with so many being driven out of London by Ministry & Local Authorities. Whether it be HMO Licensing that drove rents too high initially, "How to Rent" Section 21, Section 24, Congestion Charge £15.00 per day, ULEZ £12.50 per day now going to be extended to perimeter with-in North Circular Road. I am just outside but some of my properties are inside so that's £27.50 any day if I go to my Property Plus parking or Penalty. Huge parking Charges if you could find one, there is possible quite a lot only for Council stuck a sign there for fun saying no parking, Scores of big Timber Flower box (money boxes) landed in the middle of the road or at junctions with a No Entry sign on them + Camera its a new traffic creation Scheme, 20 MPH restriction all over Town snuffing the life out of business, huge C/tax, C/tax on empty Property. Building thousands of high rise flats clearly not required, thousands of Loft Conversions & extensions all for letting on the tax free scheme (£7'500 pa excuse). It not just Private LL's that being affected its every Home owner, time to wake up.

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    I'm sure you are correct about London Michael, you have just explained perfectly why I have zero intention of coming anywhere near London far less investing there , I think a lot of areas outside London are holding their own and will continue to do so.

     
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    I agree with Andrew. No problems like you have up in Scotland with the SNP helping rents to soar.

     
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