As we are approaching half way
through 2015 (frightening!), I was talking to a local landlord the other
day about what is happening to the level of rents that are being achieved in
the Teddington property market.
In terms of rents in Teddington,
it appears that rents being achieved for new rentals (i.e. when the tenant
moves out and new tenant moves in) have risen by 8% in the last 12 months.
However, landlords with existing tenants are generally not increasing their rents
in line with this rate. Most landlords prefer to keep their existing tenant
paying the same rent and have the peace of mind that their tenant remains thus
reducing the risk of a void period.
It must be remembered rents
nationally dropped by 7.8% over 2008/9, due to oversupply in the rental market
in 2009. A lot of the people who couldn’t sell their property in Teddington in
2008/9 when the Credit Crunch hit in 2008, decided to let their house out
instead of selling at a loss. In fact, the number of houses on the market in Teddington
dropped by 30% between March 2008 and March 2010, a lot of which came on to the
rental market in Teddington. However, looking at the longer term though,
tenants have had it good because since the turn of the Millennium, average
wages have grown by 46%, but rents outside London have only grown by 36% rental
growth over this period.
I told the landlord that there
is a lack of new rental properties in Teddington coming on the market, in fact
according to Rightmove, there is an average of 21 new rental properties are
coming to the market each month in Teddington, but when we have registered on
average 36 potential tenants each month since January, something will have to
give soon! This is compounded by the fact a number of landlords are looking to
sell their rental properties in the coming months, as the property market in Teddington
has improved (more so since the election results). This further compounded as
tenants in existing rental properties appear to be staying in properties for
longer periods of time.
Even though rents have kept
pace with inflation in the past, renting as an option has become more
affordable, and is increasingly seen as a lifestyle choice. With returning
economic growth and expected increases in the rate of growth of wages, above
inflation rental growth could rise.
If you want a chat about the
local Teddington property market, whether you be a current landlord or aspiring
investor, please do drop me an email on Rebecca@rebeccasmithpropertyservices.co.uk
or give me a call on 020 8398 9333. I’d love to hear from you.
Rebecca Smith
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