Rental Predicated to Take-off!
It is predicted by members of the property industry that there will be some interesting changes to the current property market and Amber Valley will be no exception. Our recent research has concluded that the rent that private tenants pay in Amber Valley will rise faster than property prices in the area in the next five years.
By 2022, rents are expected to increase by around 25%, whereas property values may grow by only 18%. This level of increase is expected across the entire country with the exception of the Central London property market.
Over the last five years, property values in Alfreton have risen by nearly 29% whilst property values in Ripley have exceed this, rising by just over 31%. By contrast, Rents have previously increased a lower rate of roughly 7% in the area.
The current average rental price in Alfreton is estimated at just over £500 pcm whilst Ripley landlords stand to gain a little more, with an average rental price estimation of £560 pcm. This can of course vary across the types on tenure and type of property. More information on average rents relating to tenure and number of bedrooms can be found on our blog.
Throughout the last few years, tenant demand for rental properties has continued to grow in Amber Valley, and there is currently very little evidence to suggest that this has changed in the first 5 months of this year.
The press predicted that some landlords were expected to reduce their property portfolios over the next couple of years due to new legislation and changes to tax laws and our industry has already begun to see some local landlords in the Amber Valley area starting to sell their rental properties, which could mean that in the future Alfreton and Ripley tenants will have fewer properties to choose from.
A reduction in the number of properties available to rent is likely to push the price of rents higher. In fact, talking to fellow property professionals, there already appears to be a shortage of new rental properties coming onto the Amber Valley lettings market. Therefore landlords who decide to keep hold of their rental properties, particularly those who already produce a high standard of accommodation, may see shorter periods where properties remain empty and may be able to charge more rent for their properties over the coming years.