publication date: Feb 24, 2014
author/source: Kate Faulkner, Property Expert and Author of Which? Property Books
South West and South East rents rise in line with inflation
In the South West, Homelet and LSL show small rises of 3.4% and 3.1%, with Move with Us showing a smaller increase of 1.2% and Belvoir indicating rents are fairly static at -0.4%.
South West rents are static to rising in line with inflation up to 3%. Rents vary from £660 through to around £820 from the Move with Us index. Overall, the rental indices suggest rents are stable to above inflation rises.
- Landlords – Rents rising above inflation is a great position to be in. Take advantage of the extra cashflow if you are re-letting your property and make sure all maintenance jobs are done to keep the property dry, warm and as energy efficient as possible in the winter months. Visit our How to Replace a Boiler for Landlords Checklist.
- Tenants – When rents are rising, it’s best to secure accommodation sooner rather than later. However, don’t rush into renting a property without checking it is legally let. Check if the letting agent is a member of ARLA or NALS or the landlord a member of the RLA. Visit our How to Avoid Rogue Landlords 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.
Average rents for the South East region show slight rises 4.3% from Homelet, 2.5% from LSL and 2% from Move with Us. According Belvoir, there is no change to rents year on year.
Rents in the South East are static to rising in line with inflation of around 3%. Rents vary from £775 to £875 through to a huge average from Move with Us of £1,125 – it does appear Move with Us are overestimating rents in this area. Overall, the majority of rental indices suggest rents are stable to rises in line with and above inflation.
- 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. For more help, read our Buy to Let Tax Checklist.
- Tenants – Make sure you rent from a reputable landlord. Ask to see the EPC, a gas safety certificate and find out which scheme your tenancy deposit will be kept in. Only then should you choose a property – otherwise you could end up with a rogue landlord or someone who is renting property illegally but doesn’t even know it!
Don’t get caught renting a property illegally, read our Renting a Property Checklist.
- Letting Agents – As with many areas across the UK, stock can be very difficult to get hold of. To get the best tenants and landlords, ensure you are registered with ARLA or NALS and offer client money protection. Long term landlords will work with agents who give the best service – not the cheapest commission.
For FREE, independent and up to date advice on Buy to Let or Renting a Property, sign up for FREE to Property Checklists. Join now to access our FREE property checklists, including:-