The UK rental market is about to enter its busiest time of year, with an abundance of new tenancies and renewals set to take place. With that in mind, this week I’m going to take a look at what’s been happening to the Tameside rental market over the past 12 months, what this means for tenants, landlords and property investors and what is about to happen.
Over the last three years, on average 22% of each year’s tenancies across the UK have begun during August and September.
I estimate that this equates to just under 200,000 new tenancies which are set to begin over the coming weeks; many of which in Tameside I will have a personal hand in setting up.
The flurry of activity at this time of year is a combination of students seeking accommodation before term starts, new graduates beginning new jobs and families looking to settle into new homes before the next academic year.
At the same time, there is also a surge in existing tenancies coming up for renewal around this time of year which further boosts competition for rental properties, should occupiers seek to move.
In Tameside, for several years now the gap between owner occupied properties vs the number of rented properties has continued to shrink. In 2012 for example, there were 64,792 owner occupied properties in the borough, with only 13,148 rented properties in comparison.
My research to the latest available date at the end of 2017 shows that whilst the movement in owner occupied properties is hardly staggering, it has declined nonetheless. There are now 64,126 owner occupied properties in the borough, a 1% decrease in five years. Consider as well that there have been a number of residential property developments in the borough since then providing new homes for Tamesiders; yet the number of owner occupied properties has still decreased.
On the rental side of things however, my research to the latest available date shows that the 13,148 rented properties in 2012 has since increased to 15,514. That’s an increase of just under 18%, steadily climbing year on year.
Taking a step back to look at this bigger picture shows that as homeownership across Tameside (and indeed the wider UK) continues to be out of reach for the many, despite the Government’s best intentions with all its copious amounts of schemes, Tameside’s rental sector is growing from strength to strength.
There other things to consider in the growth however; whether you’re a current tenant looking to renew, a new tenant looking to rent or a landlord / property investor looking to buy an investment / let your property in the borough.
LandlordToday has recently reported that average rents across the UK are dropping, with the North West seeing a 1.95% decline month on month. Yet the figures in Tameside tell a very different story.
Over the last 12 months, the average rent achieved for all properties let in Tameside was £569 per month. This is a +1% change on the previous 12 month period.
Flats and apartments within Tameside saw the largest change in average rents, up 3.16% compared to an average increase of 1.78% for the North West region.
Whilst rental figures for Tameside’s detached properties only increased by 1.58%, the average across the rest of the North West actually decreased -1.05%.
But what do the average rental figures in Tameside look like?
Whilst the average rental figures across the North West are typically higher per property type, it will certainly be interesting to check up on these results this time next year as the figures continue to alter.
What may surprise you however is the difference between terrace properties and flats and apartments for their rental figures. Whilst the figure difference is relatively small, it’s worth nothing that an abundance of new developments across the borough have brought a whole host of flats and apartments to the market; mostly with high specification finishes.
Of course, the higher spec a property is, the greater the rental figure you can achieve for the property.
If you have any questions about the rental market in Tameside or are looking to invest in the borough, as rental figures continue to climb against the North West trend, please give me a call on 07709 505442 and I will be happy to share thoughts and advice.