Putting your
money in bricks and mortar has long been a preferred option for many people of
Melton Mowbray. It is often part of the
retirement plan or a way of seeing some income from your savings.
Over 20
years the capital is going to increase even with the peaks and troughs of the
property market, as a long term investment there is little out there that can
match it!
Belvoir has
just released the rental index for Q3 2016, a look at the monthly rental price
movements. The report analyses the ups
and downs of the rental market, not just at a national level, but breaking down
monthly rental averages in London, the rest of England, Wales and Scotland as
well as regional level.
In the East
Midlands the average rent for the third quarter of this year is £625 which is a
3.75% increase on quarter 3 2015. The quarter 3 2016 average versus the 2015
annual average rent of £593 shows an increase of 5.5%.
As long as
there is demand the rental market will continue to grow. Because of the last governments shift in
policy away from home ownership, also the lack of houses being built, across
the UK there is now an urgent need for more housing for students, migrants and
families looking for three bed properties and four to five bedroom homes.
During 2015
and 2016, it is the first time since the recession where wages have increased
faster than inflation. I wonder though
how Brexit will affect the cash in people’s pockets; this could cause rents to
stabilise. The returns should still be
better than other investments can offer, but investing in the right type of
property is essential.
Ensuring
that the property is going to appeal a broad range of potential tenants will
mean it will let quickly and have minimal void periods.
Know your
local market – tenants looking to rent in Melton Mowbray will have a different
set of demands from those looking in Leicester City Centre.
Follow my property blog for honest advice on
rental returns; we only deal with letting property so it is key for us that you
make the right investment.