Belvoir’s Q1 rental index confirms that rents are rising, and for the first time the index has broken down rents by property type, enabling landlords and investors to check average rents in their area.
“The Belvoir rental index, prepared for us by TV property expert Kate Faulkner, is continually developing to provide information that will ensure it becomes the best and most useful source of information for landlords and investors,” says Dorian Gonsalves (Belvoir CEO).
“For the first time we have used data on average rents supplied directly by our franchisees, enabling us to accurately break down average regional rents by property type. This approach will continue, so that landlords and investors can easily check and compare rents they are achieving on properties in their portfolio.
“As predicted, rents are now on the rise, although not at extreme rates. When comparing all Belvoir offices that have been consistently trading for the last ten years in England, Wales and Scotland, the data for Q1 2019 suggested an average rent of £747 per month, representing a year on year increase of just 1% versus Q1 2018. When comparing the Q1 2019 average to the 2018 annual average of £736, this shows an overall increase in rents of 1.5%.
“However, Belvoir has been performing well in the past year, adding new offices to the network, particularly in the South East, where rents are undoubtedly higher, and so when we look at average monthly rents in England, Wales and Scotland, for all Belvoir offices – including new ones – average monthly rents for Q1 2019 are £824, suggesting a year on year increase of around 5% versus Q1 2018.
“The latest reported statistics show monthly rents range from £615 in the North West, £697 in the East Midlands, £735 in Yorkshire, £833 in the South West, through to £1,132 in the South East and £1,432 in London. However, London rents vary dramatically from one borough to the next and can also vary during the year – for reasons such as a large influx of students.”
South East
Hugh Horton of Belvoir Thanet reports that rents on flats and house increased during Q1 2019, with tenant demand decreasing for all properties. Average rents for a one-bedroom flat are £575, rising to £1100 for a four-bed house. Landlords are leaving the market, resulting in a shortage of properties.
South West
According to Jeremy Clarke of Belvoir Christchurch, there are few one-bedroom flats available, which has pushed rents up, but an oversupply of two bed flats has kept rents stable. House rents have increased across the board due to zero new stock. Tenant demand for flats and houses increased during Q1 2019. Landlords are not buying and several are selling, and lack of supply means rents and demand are expected to increase over the next quarter.
East Midlands
Lloyd Rumbold of Belvoir Nottingham reports increasing rents for flats and houses due to selective licensing and reactions to the government changes, with static tenant demand. Average rents for a one-bed flat are £550, rising to £1000 for a four-bed house. Rents are expected to increase over the next quarter, despite static demand.
Yorkshire
Daniel Johnson of Belvoir Skipton reports the average rent for a one bed flat to be £550, rising to £1000 for a four-bed house. Rents and tenant demand are expected to continue to rise over the next quarter, with a shortage of one, two and three bed properties.
North East
In the North East John Redden of Belvoir Tynedale reports that flat rents have move slightly upwards, (average rent for a one bed flat is £425) mainly in the £10/£15 range, and a steady rise with every house re-let rising from £10/25 pcm. The average rent for a four-bed house is £850. There is a lack of BTL supply, and some landlords are selling up due to government policies.
North West
Gordon Rogers of Belvoir Chester reports that rents for flats increased (the average rent for a one bed flat is £625) but remained static for houses (average rent for a four-bed house is £1195). Tenant demand declined for all properties. All rents are expected to increase over the next quarter with demand remaining unchanged. There is currently is shortage of two and three bed properties. The tenant fee ban made the market quiet.
The Belvoir Q1 2019 rental index in full, can be found here
