Tag Archives: Rent

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.

Stronger Demand For Rent In people Aged 35 And Older

A recent study by Paragon Bank suggests the desire from tenants to own property, which includes saving for a deposit, starts to fall from the age of 35.

The study found that for the age group of people between 25 and 34, 88% of respondents said they wished to own their property in the future. 71% of these respondents said they were saving for a deposit.

For the group aged 35 to 44, this falls to 72% of tenants saying they would like to own property in the future.

When you consider the 45 to 54 age group, just 70% of respondents say they are keen to own their property.

This is something to consider for landlords, as it will likely impact on willing tenants, and how long a tenant is happy to stay in the same rental property.

The rental market is experiencing a change in demand

Richard Rowntree, managing director of mortgages at Paragon Bank, said: “Our research shows a strong desire to buy amongst younger tenants who will typically use rented property as a starter home before stepping on the property ladder. This cohort also is more able to save for a deposit, making their aim of buying a home more attainable. As tenants reach their middle-aged years, the desire to own a home becomes less pronounced, but so does the ability to save for a property. These tenants will typically stay in the private rented sector for a longer period, maybe for the rest of their lives.”

It is not as if there has only been a shift in the rental market, the property market is also evolving. Recent studies from UK Finance suggest the average age of the first-time property buyer in 2019 was 32.

This means that there will be more tenants at both ends of the age demographic. This is something landlords should be aware of, and it might influence your next decision in the rental market.

You can target which tenant you want to let to

Some landlords are not bothered as to what type of tenant they let to, as long as the rental property is filled with a rent-paying tenant. However, not all landlords are as carefree in their approach to letting property.

If you have a preferred tenant in mind, it is possible to target this market. There is a notable difference between the needs of a tenant in their early 20s and a tenant who is in their late 50s or early 60s.

The size of rental property both these tenants groups are looking for might be the same, but the style and presentation that these groups want to see are likely to be significantly different.

If you are looking to let to a particular type of tenant, please get in touch, and we will be more than happy to help. At Just Lets, we want Peterborough landlords to feel confident about the letting process, and the tenants they have in their property.

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.