The Tameside rental market has grown year on year, driven by a number of reasons. As the sector grows and thus the demand and competition, so does the rents. With the uncertainty of how the property market could look in the following months given the current political climate, this week I’m going to lay down the facts and figures of how the Tameside rental market currently looks.
There’s a number of reasons plenty of Tamesiders take to renting over homeownership. The significantly lower upfront costs are easily one of the most appealing factors contributing to the popularity of the UK’s rental market, and that certainly applies to our borough.
The tens or hundreds of thousands of pounds that owning a home costs, particularly when money is tight, can make many eyes water. There are of course plenty of great deals throughout the borough to get your foot on the property ladder, but there are also many caring and thoughtful landlords (yes her majesty’s Government, they do exist!) operating in the borough, with room for more given the growing state of Tameside’s rental market.
The first consideration when looking at the Tameside rental market is finding out exactly how much rents have grown by over the past 12 months:
Detached properties in the borough have seen the highest increase of rents, 5.66% to £858pcm. Meanwhile, the smallest change in Tameside rents is for semi-detached properties, 0.45% to £670pcm.
So the question is do the increases in these rental figures reflect the demand for these properties; positioning detached properties as well as flats and apartments as the most popular in Tameside? Well, not quite…
The majority of properties let in Tameside are (predictably) terrace properties, standing as 45.2% of all rental stock let in Tameside. On the other-hand, detached properties are the lowest in the borough at 5.1%. So why do detached properties have the highest rent increases yet they are the lowest stock to be let in the borough?
Well looking at the results, you’ll also see that flats and apartments in the borough take up the second highest amount of rental stock in Tameside, whilst also seeing the second highest percentage change.
The answer somewhat lies in the quality of stock on offer, boosted by the number of new builds being brought to the market. Whilst it is uncommon for new builds to be brought straight to the rental market, a recent increase in build-to-rent and landlord’s desires to offer new builds is inevitably going to impact. Of the vast quantity of Tameside’s new build stock, this is comprised through a majority of detached properties as well as brand new apartment blocks. The new build quality of these properties makes them more desirable and thus increases the competition, driving the rents.
Yet not many Tameside renters are going to be able to afford the prices of the larger and newer detached properties.
Then there’s the question of Tameside’s renters themselves; who exactly are they?
Predictably, the largest quantity of Tameside tenants are the 18 – 29 year-olds; those who are flocking to the rental market over first-time homeownership. Given the difficulty many of these tenants have on getting their feet firmly onto the property ladder, this result was always going to be inevitable; however the amount is certainly an eye-opener.
So what does this mean for Tameside tenants and buy-to-let landlords?
The rental market is continuing to grow and it’s unlikely to slow down anytime soon. Doomsayers have been rather vocal on their thoughts of a post-Brexit property market, particularly when it comes to buying and selling which could drag house prices down. This would of course open the door to many looking to get their feet onto the property ladder, but also do the same for buy-to-let landlords.
In theory based on the doomsayers predictions, an increase in homeownership would lessen demand on the rental market and could permit the Tameside rents to decrease. However given the sheer scale of Tameside’s rental market and the continued push on buy-to-rent properties, my intuition tells me this certainly isn’t going to happen anytime soon; consequentially continuing to grow the rental market.
If you’d like any advice on tapping into the Tameside rental market, whether you’re a prospective tenant, buy-to-let landlord looking to expand your portfolio or first time property investor, drop me a call on 07709 505 442.