Owning a property can be overwhelming at times, and while there’s little doubt that it’s a smart move financially, it’s crucial that landlords stay informed about the rental property market.
A new ebook has been released by HomeLet, which focuses on West Midlands, the South West of England and Wales, and has some very useful information for landlords across the UK.
UK property prices according to HomeLet rental index data
According to HomeLet’s rental index data, there’s some interesting fluctuations in the UK rental prices this July 2016. Did you know that when you exclude Greater London, the average rental value within the UK was £779pcm, up to April this year? This is an increase of 2.3% compared to last year.
In Wales, the average rental value was £622 for new tenancies in July, which was an increase of 1.1%, compared to the figure in June, and 2.5% compared to the same time the year before. Rents were the second lowest in the country in Wales, after the North East of England, where rents were £537 this July.
The South West of England is doing very well, and recorded the fourth highest average rent in the UK after East Anglia, the South East and Greater London, with an average rent of £894. However, this includes an annual drop in the value of rentals, and in July 2015 the average was £914.
The West Midlands had a year-on-year increase in rental prices. In July, average rents were £682, which was an increase of 3.8% on the previous year and an increase of 1.1% from the previous month. This is one area where rents are on the rise, and the increase in rent was 1.5% higher than everywhere else in the UK (excluding Greater London).
The UK property market and Brexit
The ebook also explores current hot topics in the current UK property market. As many people are wondering what will happen to the UK market after Brexit, Ryan Bembridge (a senior reporter at Mortgage Introducer) weighs in on the effect of the UK leaving the European Union.
Property investors are keeping an eye out for any danger signs, and while the pound has hit the lowest rate in 30 years, it’s important to recognise that it’s not yet the time to worry.
House prices have actually been robust, and mortgage brokers are saying they’re busy while lenders still continue to lend. This is actually good news for investors who should definitely be taking advantage of lower mortgage rates since the Bank of England voted for cuts to 0.25%.
We can expect some potential investors to back off, Bembridge says, after all, Mark Carney (Bank of England Governor) predicted the economic shock that the leave vote caused, and this has given investors another reason to hesitate before buying. Investors with just one or two properties are particularly expected to think twice since they can’t expect to see the house price growth that has been prevalent over the last two years.
However, those landlords who own multiple properties will usually be more unemotional about investing and will look at investment as more of a long-term strategy, since Brexit isn’t due to happen until at least 2019.
For more information on HomeLet, one of the UK’s leading providers of landlord insurance, download the ebook from their landlords blog and sign up for regular updates