I have been discussing the Newbury rental market with some landlords recently and it seems that rents in Newbury are 7.4% higher than they were in 2008. Word has obviously got around as another Newbury landlord has since rung me, wanting to know more of the story of what was happening to current rents in the town. The reason he asked was that his current agent hadn’t increased his rent for a number of years and was concerned if he was getting the best return from his buy to let investment.
The Newbury rental market is all about supply and demand (isn’t it so in all parts of the economy?). On the supply side, 101 rental properties have come up for let in the last 31 days in Newbury. It sounds a lot until you consider there are 2,789 rental properties in Newbury, that means only 3.62% of the rental stock of properties in Newbury are coming onto the market each month (it is normally around 5%). One reason for this lack of new rental properties coming on the market is the fact that tenants seem to be staying in properties longer.
With this lack of supply, newer tenants have to pay more to secure the property they want. And this is the crux of the matter …properties they want. Older properties in Newbury, that haven’t been maintained, still retain their wood chip wallpaper from the 1970’s and thread bare carpets have seen their rents drop. Tenants want either modern properties with all the mod cons or older style properties that have been presented to an exceptional standard – and they are prepared to pay for the privilege. Rents for top quality properties in Newbury have risen by 0.5% in the last month. Any properties, old or modern, put on the market in good or excellent condition will rent in a matter of days.
Interestingly, looking at Newbury property values, the Land Registry have just released their latest set of data on property values. Throughout April 2015 (the latest set of data), property values rose in Newbury, with 0.8% growth, meaning they are now 9.6% higher than they were a year ago. When one looks at the regional picture, the South East average property values rose by 0.8% in the last month.
Looking forward, after considering all the statistics and talking to other property professionals, I expect property values in Newbury to rise by 3% to 5% over the coming 12 months, following the Conservative victory back in May. In a forthcoming article, I will discuss how the number of properties changing hands each month has dropped considerably in the last 10 to 15 years in the town.
…And so back to our landlord. Each property is unique and so as his tenancy agreement allows him to inspect the property with notice to the tenant, we will be visiting the property next week.
If you are an existing landlord in Newbury or thinking of becoming one, then a good source of information is the Newbury property blog. Although I operate Downer & Co Letting Agents in Newbury I am also a landlord myself and have over 15 Years experience buying selling, letting and managing property in the local area. I am always happy to chat to you openly and honestly about any aspect of the local property market.
