23 Jul 2019
A HOTSPOT FOR RENTING
The East Midlands is a hotspot for rented property - and demand continues to rise.
With property prices remaining out of reach of many younger house buyers the Midlands offers a wide range of options in affordable rented accommodation, as well as easy commuting to London.
The latest retail index by Landbay reveals the top three hotspots for rental growth in the last 12 months as Leicester (3.02%), Nottingham (2.96%) and Northamptonshire (2.44%), with eight of the top ten areas either in the East Midlands or the East of England.
According to Homelet property rental specialiststhe average rental value for new tenancies in the East Midlands is £635 a month, around a third less than the UK average of £941.
The average rental value for new tenancies in the West Midlands is £693 per calendar month, with average rental values in the region seeing an increase of 2.2% compared to May 2018.
In London the average rental value for new tenancies is almost three times as much, at £1,611 a month, although rents have increased by only 0.9% compared to last year.
At £530 per month, the North East remains the most affordable region for renting, although rents have grown consistently over the last five years.
New Government figures in the English Housing Survey show the private rented sector comprising 20% of households in England. The proportion of private rented sector households has doubled since 1996-97 and the overall size of the private rented sector has increased over this time from 2.1 million households in 1996-97 to 4.7 million households in 2016-17.
The good news is that 84% of private renters are both satisfied with their accommodation and their status as private renters, although most expect to buy their own home at some point in the future.
David Smith, the Residential Landlords Association's Policy Director, says the Government survey challenges beliefs that private renting means insecure tenancies and ever increasing costs.
“Renters are spending less of their income on housing and are staying in their homes for over four years on average.
“As Ministers look at ending so called 'no fault' evictions the survey finds that the large majority of those who moved out of their home did so because they wanted to, either for work, a larger home, or to move to a different area (72%) or because their tenancy had come to an end (8%). A further 10% moved on mutual agreement with their landlord.”
Shezad Tayub, Director at Online Property Agents, confirms these positive trends in rented accommodation.
“The Midlands is an upwardly mobile area for work and living and the many rental options here reflect latest trends.
“Establishing sound relationships between landlords and tenants is key to providing satisfaction in rented accommodation. We are committed to offering the best services for landlords and tenants alike.”
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