Tag Archives: Lettings

Average Rents Continue To Rise

According to the last figures provided by Homelet, average monthly rents in the United Kingdom stand at £1,029 per calendar month (pcm). This is the second month in a row this figure has sat above £1,000 and the year-on-year growth stands at 6.6%.

Of course, at Just Lets Peterborough. We focus on national and local issues in the rental market. According to the home.co.uk website, the current average rental fee in Peterborough stands at £780 pcm.

We know the Peterborough rental market

This is a good bit below the national average, which is something that Peterborough has in its favour.

The same source states the following average rents for property types in Peterborough as:

  • One-bedroom property in Peterborough has an average rent of £650pcm
  • Two-bedroom properties in Peterborough have an average rent of £884pcm
  • Three-bedroom properties in Peterborough have an average rent of £962pcm
  • Four-bedroom properties in Peterborough have an average rent of £1,220pcm
  • Five-bedroom properties in Peterborough have an average rent of £2,350pcm

In looking at other parts of the country, as you would expect, London leads the way, with an average rent of £1,645pcm. However, after many months of declining rental fees, this is the second rise in a row for London. The annual variance has risen by 2.1%.

Peterborough is close to the average when London is removed

As you can see, London is an outlier, and it can be seen as skewing the entire rental market. When you remove London figures, the average rent in the UK stands at £878pcm. Therefore, the average rent in Peterborough is still lower than the national average, but is closer to this level.

Andy Halstead, HomeLet & Let Alliance Chief Executive Officer, comments: “As a group, we’ve seen exceptional growth, supporting over 5,000 professional letting agents across the UK. With data based on 1m tenant references per year, The Rental Index provides the market with the most concise view of achieved rents. The data shows the exceptional growth in rental values, particularly in areas that are within commutable distance to London. Throughout the pandemic, the rate of growth in some regions has more than doubled against previous years.”

Andy Halstead continued by saying; “We see positive signs in the Capital, rents are now just 1.2% down on pre-pandemic levels from July 2019, with boroughs in central and inner London showing growth in achieved rental values. With restrictions easing, optimism is returning. The demand will steadily grow for the rest of the year. The private rented sector is exceptionally resilient, and demand for property remains high as we see the fast-growing Build-to-Rent industry meeting some of these needs across the country. That’s a theme that will continue for the foreseeable future, as tenants look to benefit from the lifestyle the industry can provide with features like on-site amenities and concierge services.”

If you are a landlord in or around Peterborough, and you need assistance in managing your rental property, we can help. We know these are challenging times for landlords, but there is a demand for rental property. When you need guidance in the local market, contact Just Lets Peterborough today, and we will be happy to help you.

You can find Just Lets Peterborough at 142 Oundle Road, Peterborough, Cambridgeshire, PE2 9PJ. Feel free to email us at peterborough@justlets.com or call us today on 01733 346255.

Opportunity For Landlords As We Move Forward

It is no surprise to see many landlords reviewing their place in the rental market. The past year has been a challenging one for all.

However, it should be noted there is still huge demand for rental property, and this is set to continue. There has been a fall in rental accommodation supplied to the market, but this represents an opportunity for many landlords.

If you would like to learn more about the Peterborough rental market, it makes sense to call on the experts for help and guidance. At Just Lets Peterborough, we know the local market, and we stay in touch with what is happening across the country.

How are you performing this year?

A recent study suggests 300,000 fewer rental properties have made their way to market in the last 12 months.

The most significant decline came in the South West and Wales. There was a drop of 48% for available homes in these areas. London was the only area that experienced a rise in available rental properties.

Urban and rural divide across the country’s rental market

For cities across Britain, there was a 16% rise in homes available this year, than in 2020. However, for towns and rural locations, there were rises of 28% and 52% respectively.

The number of prospective tenants in rural areas remained flat, but in cities, there was a fall of 10%.

Lack of rental supply boosts landlords

According to the study, the lack of rental property on the market has helped 50% of landlords to secure a higher rental fee than they had previously achieved. This is the most significant proportion since 2016. The average increase in rental fees was £60 per month.

If you are looking for guidance or assistance in the Peterborough rental market, get in touch, and we will be more than happy to assist you.

Aneisha Beveridge, a well-regarded name in the property research sector in the UK said; “Tenants are now faced with significantly less choice, which in turn is pushing up rents. And with many landlords having multiple offers on the table, half of investors have been able to increase the rent they charge. Rental stock levels have also been hit with the onset of the pandemic causing investors to hold back. This has been compounded by emergency legislation which saw landlords having to extend a tenant’s notice period to a minimum of six months, reducing turnover further.”

Aneisha also said; “At the same time, many renters who were looking to buy had to put their plans on ice and continue renting, as banks sought larger deposits for house purchases. However, there are signs that this could change. Over the last five months, and in an effort to beat the original stamp duty deadline of the end of March, landlord purchases started to rise, which will add to stock levels when these homes complete.”

If you are a landlord in or around Peterborough, and you need assistance in managing your rental property, we can help. We know these are challenging times for landlords, but there is a demand for rental property. When you need guidance in the local market, contact Just Lets Peterborough today, and we will be happy to help you.

You can find Just Lets Peterborough at 142 Oundle Road, Peterborough, Cambridgeshire, PE2 9PJ. Feel free to email us at peterborough@justlets.com or call us today on 01733 346255.

More Calls For EPCs To Be Reviewed And Removed?

The National Residential Landlords Association (NRLA) has supported a report by MPS which criticises Energy Performance Certificates (EPCs), and has called for a better standard of energy-efficiency measures for properties.

At this point in time, rental properties must have a rating of E or better. However, the Government is looking to raise the minimum rating from E to C. The timescale for this change is as follows:

  • New tenancies should hold at least a C rating by 2025
  • All existing tenancies should hold at least a C rating by 2028

The all-party Environmental Audit Committee states EPCs are outdated. They also state that EPCs don’t support modern energy efficiency, nor do they support low carbon heating measures.

The group says the Government has underestimated the costs associated decarbonising UK homes by 2050. They claim the underestimation stands at between £35 billion and £65 billion.

Cost will always be a significant factor

Around 19 million properties in the country require upgrades to meet band C standards. This might cost on average £18,000 per property. If so, this is a figure which is significantly higher than the Government’s estimate.

NRLA local authority policy officer Gavin Dick says: “We welcome the report, which features a range of recommendations that the NRLA have been calling for, which we believe would ensure landlords are empowered to make these essential changes. We know that landlords are willing to do the work, but they require more information on what updates to make and the order in which to do this work to make their properties energy efficient.”

Gavin Dick concludes by saying; “The committee recommendation also supports the NRLA’s calls to Government to roll over funds for the Green Homes Grants scheme. We’re also very supportive of the Committee’s call for the introduction of Building Renovation Passports to aid in the decarbonisation of homes. In our view the Committee’s recommendations would give landlords confidence to carry out the work to ensure the PRS plays its role in helping to bring about a net zero Britain by 2050.”

There are many recommendations to consider

As well as recommending EPCs are replaced with Building Renovation Passports, the MPs’ committee made the following recommendations:

  • All allocated funding for the Green Homes Grant that has not been spent by the end of March 2021 should be rolled over
  • Government should set out an ambitious but realistic trajectory for owner occupiers to achieve minimum EPC C standards in its Heat and Buildings Strategy
  • Government should work with the financial sector and major landlords, including local authorities and other social landlords, to stimulate renovation through green mortgages, green finance and low-cost loans
  • Schemes such as the Home Upgrade Grants, Social Housing Decarbonisation Fund and phase two of the Green Homes Grant Local Authority Delivery Scheme should all have their funding front-loaded and the schemes rolled out without delay
  • The Chancellor should reconsider proposals to reduce to five per cent the rate of VAT on the labour element of refurbishment and renovations, and reinstate the reduced rate of VAT payable on Energy Saving Materials at five per cent while expanding its scope to cover energy storage, heat pumps and electric vehicle charging. Up until 2019, certain clean technologies were eligible for a reduced rate of VAT of five per cent
  • The government should consider how the national infrastructure bank could be used as a vehicle to finance energy efficiency given the scale of success achieved in Germany through its state funded low interest loan scheme
  • The government should set out how energy efficiency improvements can be reached in homes currently out of scope in its “cost effective, practical and affordable” criteria
  • The government’s basic energy advice service available in England should be upgraded to a specialist bespoke advice service similar to the Home Energy Scotland network
  • The social rented sector should be subject to the same standards as the private rented sector

If you are a landlord in or around Peterborough, and you need assistance in managing your rental property, we can help. We know these are challenging times for landlords, but there is a demand for rental property. When you need guidance in the local market, contact Just Lets Peterborough today, and we will be happy to help you.

You can find Just Lets Peterborough at 142 Oundle Road, Peterborough, Cambridgeshire, PE2 9PJ. Feel free to email us at peterborough@justlets.com or call us today on 01733 346255.

Demand For Rental Property Remains Robust

It is fair to say the start of 2021 has been as challenging as most of 2020, but there are some constant elements in life to look out for. The demand for rental property has remained robust, and if you are a landlord, you can take comfort from the sustained demand for rental property.

We are here to assist landlords in and around Peterborough as best we can. At Just Lets, we know the local market, and we stay in touch with what tenants want. We also make sure we stay in touch with the latest national figures and news, which means you receive all the information you need to make an informed decision.

Demand for rental property rose at the start of this year

According to ARLA Propertymark, demand for rental property rose by 27% in January 2021, and the number of new prospective tenants registered per branch (on average) stood at 81. This is up, significantly, from the average of 64 in December 2020.

In January 2020, the number of new prospective tenants stood at 88, so the 2021 figure is marginally lower, but generally, it is a positive figure when you think of the upheaval of the past year.

Supply of rental stock

There were contrasting fortunes for the number of properties related to each branch.

There was a fall from the December 2020 to January 2021 figures, moving from 204 to 196. However, when you consider the January 2020 and January 2021 figures, there was an increase from 191 to 196.

Rent prices

39% of agents experienced landlords increasing rent in January 2021 compared to 30% in December 2020. However, in January 2020, 42% of agents experienced landlords increasing rent, so the annual figure represents a fall.

The number of tenants who negotiated a rent decrease dropped from 2.2% in December 2020 to 2% in January 2021.

This is higher than the January 2020 figure, where only 1.3% of tenants successfully negotiated a rent decrease.

Mark Hayward, Chief Policy Advisor, Propertymark, said: “Our latest figures clearly show that the rental market isn’t indicating any signs of slowing down as demand for rental properties surged last month. Letting agents are continuing to support landlords and their tenants during these ongoing difficult times, and it is imperative that tenancies are maintained to keep the rent flowing.”

Mark Hayward also said; “Now we have a route out of the current lockdown, it is vital that continuity in the private rental sector is maintained to continue to help the nation’s economic recovery from the pandemic. To do this, the government must consider introducing a financial support package for those tenants who have built up rent arrears due to the financial impact of Covid-19.”

If you are a landlord in or around Peterborough, and you need assistance in managing your rental property, we can help. We know these are challenging times for landlords, but there is a demand for rental property. When you need guidance in the local market, contact Just Lets Peterborough today, and we will be happy to help you.

You can find Just Lets Peterborough at 142 Oundle Road, Peterborough, Cambridgeshire, PE2 9PJ. Feel free to email us at peterborough@justlets.com or call us today on 01733 346255.