Rental Market Commentary November/December 2009
Rental incomes have undoubtedly gone backwards this month against the recovery. FindaProperty shows the work figures since May 2009 while Belvoir only shows a slight fall. The East Midlands seems to have faired well to date, but more stock arriving on the market may well cause a decline early in the year.
Good quality properties in undersupplied locations (and well presented) still let very well.
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Regional Differences
As always with property, 'UK averages' rarely help you understand what's actually happening in your area. And the FindaProperty Index shows this to be true with:-
Top Performing Areas
North East England Rental Income -0.2% yoy, average of £607 per month giving a 4.78% average yield
South East Rental Income -2.2% yoy, +1.7% month on month and an average of £1,108 per month giving a 4.82% average yield
Poor Performing Areas
North West England Rental Income - 9.6% yoy, average of £601 per month giving a 4.5% average yield
West Midlands Rental Income - 5.3% yoy, average of £626 per month giving a 4.2% average yield
Belvoir Lettings Regional Lettings Index
Belvoir is one of the top franchised letting agents in the UK and takes pride in ensuring they let quality properties legally and at fair prices. They have over 140 offices across the UK and kindly let us have access to their national and regional lettings index:-
The following figures show the South East has been quick to recover from rental falls and that London's rental market has turned a corner. Most areas bar the North East and East Anglia (suffering from outmigration) are still taking a while to recover.
Belvoir Region | Jul 08
to Sep 08 | Oct 08
to Dec 09 | Jan 09
to Mar 09 | Apr 09
to Jun 09 | July 09
to Sep 09 | Oct 09
to Dec 09 |
London | -2% | -2.4% | -1.75% | -5.51% | +7.48% | +11.19% |
South East | 6.9% | -2.8% | -4% | +1% | +3.25% | -2.63% |
South West | -1.4% | -1.0% | -3.6% | -1% | +0.57% | -0.58% |
West Midlands | 0.6% | -0.8% | +4% | -2.55% | -2.36% | +0.15% |
East Midlands | 1.6% | -2.6% | -2% | -3.32% | -0.01% | +0.15% |
East Anglia | -1.9% | -1.0% | +2% | -3.98% | -2.29% | 0% |
Yorkshire | 2.9% | 1.9% | +2.9% | -3.57% | -1.20% | -1.31% |
North West | 1% | -0.5% | -2.7% | -3.05% | +0.45% | +0.92% |
North East | 0% | 0% | -0.75% | -1% | -3.89% | +3.71% |
Scotland | 17% | -3.8% | -0.4% | -1.36% | -1.39% | +15.51% |
Whole of UK | 0% | -1.4% | -1.95% | -1.5% | 0% | +0.68% |
