publication date: Feb 18, 2014
author/source: Kate Faulkner, Property Expert and Author of Which? Property Books
East Midlands' rents static while West Midlands' rents are on the rise
For the East Midlands, Belvoir’s figures show a slight fall of -1.2%, with LSL, Move with Us and Homelet all showing small rental increases year on year of 1.3%, 1.9% and 3.2%, respectively. It does appear versus other indices, Homelet tends to show much higher rises than all the other indices which in the main agree on trends with each other.
East Midlands’ rents remain similar to 2012 at the end of 2013. Rents vary in the area according to the indices from around £550 through to £650 per month.
- Landlords – When rents aren’t keeping up with inflation, you need to try to remain cash flow positive, which may mean minimising your costs. Don’t compromise on a good service from letting agents or stint on maintenance costs. Your highest costs are likely to be your mortgage, so if you can, look to see if there is a better deal. Check out how to reduce your finance costs by visiting our Financing Buy to Let Checklist.
- Tenants – When some rents are rising and others more stable, ensure you check out what’s happening in your local area and try to get a good deal if you want to rent for the long term.
Is now the time to buy versus rent? Read “Work out if Buying is Cheaper than Renting for you Checklist.”
- Letting Agents – Landlords need a lot of help understanding the best way of maximising their rents. Make sure you are offering a long term buy to let service rather than just a ‘commodity’ service to put a few photos on line and show prospective tenants around properties.
West Midlands’ rents rising
Belvoir recorded a rise of 3.2% year on year for the West Midlands, while Move with Us and Homelet registered smaller increases of 2% and 1.3%. The LSL figures indicate small falls of -2.7% year on year.
West Midlands’ rents are showing trends in rental income of +3% to -3% year on year. Talking to local agents, this is likely to be different rental types, the City Centre does well, while suburbs remain stable.
If you are a landlord/tenant in the West Midlands, rents vary from £550 to around £670. Typically, rents are fairly stable to small rises in the region, with the exception of the LSL figures which show slight falls of -2.7%.
- Landlords – Keep an eye on your returns and if interest rates rose, check if your property will still be cash flow positive? While rents are rising, take the chance to improve any neglected décor and/or maintenance and always check you are mitigating tax, checkout our Buy to Let Tax Checklist.
- Letting Agents – As with many areas across the UK, new stock can be very difficult to get. To get the best tenants and landlords, ensure you are registered with ARLA or NALS. The better service you provide to landlords, the less likely they will leave for alternative cheaper options.
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