With Easter just gone and considering we are a quarter of
the way through 2015, I was talking to landlord from Taplow the other day about
what is happening to the level of rents that are being achieved in the Maidenhead
property market.
In terms of rents in Maidenhead, it appears that rents being
achieved for new rentals (i.e. when the tenant moves out and new tenant moves
in) have risen in the order of 3.8% in the last 12 months on top of the range
modern properties, yet remained static for older terraced houses and converted
apartments. However, landlords with existing sitting tenants, irrespective of
age are not increasing their rents, as most landlords prefer to keep their
existing tenant paying the same rent and have the peace of mind that their
tenant remains, paying the rent (thus reducing the risk of a void period).
It must be remembered rents dropped by 2.0% over 2008/9, due
to oversupply in the rental market in 2009.) A lot of the people who couldn’t
sell their property in Maidenhead in 2008/9 when the Credit Crunch hit in 2008,
decided to let their house out instead of selling at a loss. In fact, the
number of houses on the market in Maidenhead dropped by 61.2% between April
2008 and March 2010, a lot of which came on to the rental market in Maidenhead.
However, looking at the longer term though, tenants have had it good because since the turn of the Millennium,
average wages have grown by 46%, but rents outside London have only grown by 36%
rental growth over this period.
I told the landlord that there is a lack of new rental
properties in Maidenhead coming on the market, in fact according to the Office
of National Statistics, there are only 20 new rental properties are coming to
the market each month in Maidenhead but the population of Maidenhead is rising
by 109 people a month – something will have to give soon! This is compounded by
the fact a number of landlords are looking to sell their rental properties in
the coming months, as the property market in Maidenhead has improved. This
further compounded as tenants in existing rental properties appear to be
staying in properties for longer periods of time.
Looking at the rents charged in Maidenhead, historic
evidence in the UK suggests private market rents have moved in line with
general inflation. Government figures only go back as far as the year 2000, but
looking at other countries with similar housing markets (America, Australia,
Ireland and Holland) the fact is rents paid by tenants tend to rise in line or
just ahead of inflation.
As short term wage growth in Maidenhead has eased off
recently, rising by only 1.3% in the last 12 months, taking average salaries in
Maidenhead to £39,202pa, with the tax breaks announced by The Chancellor in the
Budget, I believe, even though rents have kept pace with inflation in the past,
renting as an option has become more affordable, and is increasingly seen as a
lifestyle choice. With returning economic growth and expected increases in the
rate of growth of wages, above inflation rental growth could rise.
If you want a chat about the local Maidenhead property
market email me on duncan.price.taplow@gmail.com
