Are your rents still going higher? 📈

According to Rightmove rental prices in the North-East are up 3.6% on the quarter and 6.7% on the year. We’re definitely seeing this ourselves,...

According to Rightmove rental prices in the North-East are up 3.6% on the quarter and 6.7% on the year.

We’re definitely seeing this ourselves, where on new lets rental prices are increasing between 5% & 10%, but will this continue?

As I’ve mentioned before there’s still plenty of money floating around the UK, £150 billion of excess savings, saved during the lockdowns, inflation is running at 4%+ and the minimum wage is due to go up by 7% in 2022. This is all pointing towards a strong rental market next year as well as a strong property market. House prices are expected to moderate next year, from 10% to 6% but with some of the momentum gained this year I wouldn’t bet against the North-East beating the UK and averaging around 8%.

Everything is pointing in the right direction for another bumper year for landlords. The only thing on the horizon is interest rate rises, which are a racing certainty to increase next year – so if you’re outside of your current deal or it’s coming to an end let us know.

We have a mortgage broker ready to help , so let us know and I’m sure we can help.

The extent of interest rate rises is unknown but I think inflation will run far in excess of interest rates for the foreseeable future. We could easily see 5%+ inflation with interest rates below 1%.

The question is with all these things in your favour, how do you make sure you have a bumper year?

Nice Houses = Nice Tenants = Very very nice rents!

We recently re-let a property we’d lightly refurbished 18 months ago in Chester-Le-Street, the rent had gone up from a toppy £495 to £525 in that time for a mid-terrace house. The house came back in beautiful condition and let first time. These are some of the features which helped us to achieve this:

• Off white grey walls, grey doors and carpet – to hide the dirt and make it WOW!
• Commercial vinyl in the kitchen which didn’t rip when moving all the white goods – fridge, freezer and washing machine.
• Feature walls in the bedrooms to boutique it!

As you can see below the property looked amazing even after 18 months of use: