I am always reading different stories in the papers, rents are up, rents are down, and I don't know who to believe. If statistics from the London rental market are included this can also affect the figures. Each area of the UK is so different it seems pointless reading the national stories.
Landlords are always asking my opinion on rental levels and there is no easy way to decide this. You need to consider what else is available to rent that week as well as other properties on the same street of the same specification, also the rent they are achieving.
The Media are always looking for market trends and I wanted to consider what has happened in Melton Mowbray. We have been renting out properties in Melton Mowbray and the Vale since 1998 and are currently managing over 340 properties - we have so much data that could show exactly what is happening to the rents.
When looking at the levels of current rents we must also consider the increasing amount of long term tenancies. If tenants are staying in a property for a long time landlords are not always keen to increase the rent, this can mean tenants are paying less than we would achieve if it came onto the market today. Long term tenancies are a growing trend and even though we review the rents annually it still doesn't always keep up with market values.
So I looked at properties that have had new tenancies recently and compared these figures to the rents we were achieving 7 years ago.
The two bedroom terrace properties had seen an increase of 11% since 2009, in real terms around £60 per month. Three bed semi detached properties on the country park estate had seen around a 9% increase since 2009, around £70 per month.
Interestingly, the village properties had only seen around a 5% increase in the same time period, around £25 per month. Most of this increase has been since 2013 when demand really rocketed and we seemed to have much less property on the market to let. Probably as a result of tenants staying in their homes longer.