Is Coronavirus responsible for the increase of Property rental prices across the South West?

Is Coronavirus responsible for the increase of Property rental prices across the South West?

In an earlier article, ‘We got through the year together!’, we explored the reasons behind property purchases. For thousands and thousands of people, the Coronavirus pandemic together with the extra time spent at home during the lockdowns and the improved work from home opportunities have encouraged them to re-evaluate their priorities and the work/life balance.

UK rent prices are on the rise

HomeLet’s rental index data for December shows average rental prices have increased by 2.7% year-on-year to hit £979 per calendar month (pcm). Excluding London, the average rent in the UK is now £838 pcm, showing an increase of 5.7% on last year.

According to HomeLet’s figures nine of the twelve monitored regions showed annual growth in rental vales between December 2019 and December 2020, with the South West seeing the largest increase for the fourth consecutive month.

 

Rental value in London decreases due to the desire / mass exodus to the West Country

We have seen a growing trend of people deciding to move away from heavily populated areas such as London in favour of the Countryside, often small towns and villages within the South West. As people relocate it is often the choice to rent their home rather than sell the property, this is a contributing factor to the surge in available properties to rent within the London areas, which has led to rental prices falling.

Here’s what HomeLet says;

Andy Halstead, Chief Executive at HomeLet, said: “At a national level the latest data shows a continuation of the trends we’ve seen emerging since the national lockdown ended, with rents for new tenancies increasing across the UK, with the exception of London.

In the regions surrounding London, the annualised variations in rental values for new tenancies looks significant.

In reality this is a theme that we’ve seen grow gradually month on month, since July 2020.

The trends we’ve seen in the past 12 months highlight the responsiveness of the private rented sector, and the crucial role it plays in supporting the changing needs of a significant proportion of households in the UK.”

Are you looking to let your property?

Our experienced lettings team are well-versed on how best to maximise your letting investment. We’ll advise you the best way to present your property and can use our extensive database to source an ideal tenant for you.

We will take on the responsibility and pressure of your rental property, dealing with the day-to-day queries and correspondence, so you don’t have to.

Taking you under our wing

With tougher lockdown restrictions possible to help curb the impact of the virus we know life can be a little unsettling at the moment so whatever the future holds, let us take you under our wing for all your property needs.

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If you would like to discuss any aspect of selling/letting, request a property viewing or to arrange a free property consultation, please get in touch with your local Seddons branch.