A local expert's guide to renting in Harrow
The private rental sector is currently worth £1.29 trillion, and by 2032 it is expected that 18 per cent of the housing stock in the UK will be privately rented. So you’re all probably thinking of the best way to get yourself a buy-to-let, right? Well, fear not, because we’re going to tell you everything you need to know about renting in Harrow.
Despite reports in the media, the residential lettings market finds itself in rude health. The number of people searching for rental accommodation is on the rise, and the average UK rent is now just over £900pcm. With that in mind, what makes a good buy-to-let and which type of mortgage (if you need one) should you apply for?
Tenants tend to be young(ish) professionals with budgets suited to apartments, which makes this type of property the most popular in the lettings market. In particular, one and two bedroom flats, with two bedroom apartments unsurprisingly achieving slightly higher rents. Yields are often higher on apartments thanks to their lower purchase value.
A greater number of people have decided renting is the most viable option and are becoming more selective about the properties they move to. The length of time a tenant stays in rented accommodation is increasing too, with 84 per cent of tenants in the UK spending more than two years in a rented property. Longer stays mean shorter void periods for landlords. However, buy-to-let investors are finding that they need to offer suitable accommodation that meets increasing tenant demand.
Buy-to-let mortgages are most common for landlords buying investment properties. You will need a loan-to-value ratio of around 75 per cent, and a monthly rental income that is around 125 per cent of the of your monthly mortgage repayment. Interest only are the most popular type of buy-to-let mortgages.
In Harrow, the average monthly rent is £1,066, so it’s not hard to see why a potential investor would see the appeal of extra income. If you’re a current landlord or thinking about purchasing a buy-to-let property, pop into our office for a friendly chat or give us a call. One of our local property experts will be happy to assist you.
Quarterly sales levels by type
In this chart we’ve compared sales levels for flats and houses in the last few quarters. We've opted to look at an index rather than absolute numbers, we’ve indexed the rates. This means that both property types start at 100 at the start of the period and you can see how they’ve changed since, on an equal basis.
Price volatility in recent months
Average sold prices can change a lot over a short period of time. The effect is accentuated by the small number of properties transacting in a local area. So this chart shows a lot of volatility but also represents a warts-and-all profile of recent market movements.
Lifecycle of our residents
You might think you know our area inside out, but this chart might make you think again. We've split the area according to where people and families are in their lifecycle. This has a big impact on the housing market with people needing different types of housing at different points in their life.