Over the last twelve months, rental values have risen significantly across all regions of the UK, except London. The initial Covid countryside exodus and the need for more internal and outdoor space has continued to rise as people search for the good life. This along with the introduction of more regulations and the price to buy still higher for the average first-time buyer, renting is becoming more and more appealing.
Here, Teresa Sargeant, Lettings Manager at our Hexham office assesses the current residential rental market in the north east of England.
Demand for rental properties in the Tyne Valley saw a huge rise in the past twelve months with average rent achieved for properties let in Hexham at £776 per month. Demand currently far outweighs supply, a +21% change on the previous twelve months, resulting in an exponential growth in rental prices, and we are yet to hit the traditionally ‘busy rental period’. Analysis of tenancy start dates, based on data from the past 5 years indicates the market starts to accelerate in June, with nearly one third of all tenancies starting between July and the end of September. Source: Dataloft
Short term rental requests have also seen a resurgence due to the migration north with people wanting to relocate and rent a property until they have decided exactly where they want to permanently base themselves.
With increased demand for rental property comes increased benefits to landlords. Higher rental demands result in a higher rental yield and increased return on investment. And with such high demand there is much more choice for landlords when deciding on the most suitable tenant for their property.
Even with the recent increase in both demand and rental prices, the north east remains the country’s most affordable lettings market. Landlords should be preparing to capitalise on the rental market as it looks set stay busy for the remainder of this summer and into Autumn.
youngsRPS are members of The Royal Institution of Chartered Surveyors (membership 753657) which is a client money protection scheme and The Property Ombudsman (membership T01758) which is a redress scheme.
We have a long history of working with landlords across the region, providing excellent customer service and trusted advice for generations of tenants and landlords.