The surprising dynamics of the private rented sector
The private rented sector is one of the fastest moving parts of the property industry, and that's particularly true of our area, as illustrated in the chart above. Keeping up with the latest trends and data on things like market rents, yields and the supply/demand balance is crucial for any serious investor who wants to win the property game.
Setting the optimum rent is usually foremost in the minds of every landlord. Set it too low and you run the risk of stretching your margins. Set it too high and you risk serious damaging the whole strategy with a lengthy void period. Knowing what rents the market will absorb is key and that's one of the most important things a letting agent will help you with.
An agent will also understand the profile of the average renter and what their expectations are. By working with an agent, they will help you configure the way you market the property to ensure you get the best possible tenant and a length of tenancy which serves your strategic goals.
Many local rental markets are very specialised. For example, some markets are perfect for short term lets. These markets tend to wax and wane with house price growth. If prices are stagnating, many people will choose to extend their home rather than upsize and may choose to live in a rental property for a month or so while the work is being carried out.
There is a very seasonal element to every rental market. In big towns and cities, there is a big influx of young renters after they graduate, usually around September time. In market towns and villages, the seasonality is less pronounced but there tends to be a peak in rental activity in spring time.
From a landlord's point of view, the rental market can be something of a moving target and that's why the most important thing is to arm yourself with as much data and local expertise as possible. It's imperative that you work with a good local agent if your investment is to succeed. We'd love to work with you, but even if you just want some free advice, please don't hesitate to give us a call.
Overall sales levels in the last 18 months
There's so much going on in our local market it's sometimes hard to keep up. However, one of the measures we as property professionals are fixated on is how many sales are taking place. This chart shows the total number of sales over the last few quarters.
Prices over time vs region and national
A lot has happened in the property market recently, particularly when it comes to prices. However, what's happening locally doesn't always reflect what's going on regionally or in the country as a whole. This chart shows prices side-by-side and reveals telling patterns.
Hours worked each week
Nobody ever lay on their death bed wishing they'd spent more time in the office. However, most of us have our nose to the grindstone to make ends meet and our area is no different. This chart shows how long the working week is for people here.