2014 was a superb year for the lettings industry, now for 2015...
Politicians may have told us back in Q4 2009 that Britain was finally out of the recession, however, this was not really the case, as it wasn't until October 2012 that the country finally emerged from one of the worst financial downturns in recent history. During the recession, the letting and estate industry suffered considerably, with property prices falling and the number of sellers and buyers decreasing. However, 2013/2014 saw house prices escalate and the number of landlords increase, which made 2014 one the best years for the lettings industry since pre 2012. Countrywide, the UK’s largest property service expert, have proved this by posting monthly figures from Q4 2014 that reveal the lettings industry is back on the rise -all figures quoted below are based on the average across the UK.
More tenants, longer tenancies and rising rents
In September 2014, Countrywide revealed that the demand for rental accommodation in Britain had risen in the 12 months up to August 2014 and that for every rental property that came to the market, 5 tenants wanted the property, up from 4.2 tenants in August 2013. Landlords also achieved an average of 99.6% of the asking rent for all their properties in August 2014.
The average cost of rent in the UK also broke the £900pcm barrier for the first time in August 2014, which represents a 5.1% rise in comparison to the 12 months previous. London was unsurprisingly found to be the most expensive area to rent at £1,166pcm, while Wales was one of the most affordable areas at £567pcm – Cardiff was however higher than the Welsh average at £729pcm.
The Countrywide figures also indicated that tenants were choosing to remain in their property for longer by signing up for lengthier tenancy agreements. In the UK, every region bar Central London saw the length of the tenancy rise to just over 16 months in August 2014.
Tenancies up, vacancies down
In the 12 months up to October 2014, the cost of agreeing a new tenancy rose by 3.7%. However, this rise was not automatically passed straight on to tenants as the cost of rent in the UK only increased by 1.7% in the same period. Countrywide stated that this is primarily down to the number of tenants on 12, 18, or 24 month contracts, who benefit from fixed rent during the period of their tenancy.
The Countrywide figures also showed that the average rental property in the UK was found to remain empty for just 14 days a year, representing an occupancy rate of 97%. What’s more, half of all properties on the market in the UK were let within two weeks of becoming available.
Public transport played a key role for tenants in 2014
The final Countrywide report for Q4 2014 revealed that public transport played an important role for landlords and tenants alike. The figures indicated that in Q4 2014, two-thirds of private rental properties in the UK was within one mile of a railway station, and the vicinity of public transport played a significant role in letting out a property. Indeed, accommodation within a mile of a train station took a maximum of 39 days to let, which was 6 days quicker than a property further away.
Cardiff has rapidly become one of the most fashionable places to live, especially for young professionals and families, thanks to the millions of pounds spent on the city centre, the new developments - both residential and commercial - built across the city, and the diverse range of highly-rated academic institutions such as Cardiff University and the Royal Welsh College of Music & Drama. CPS Homes is a regulated letting and estate agent specialising in all areas of Cardiff, and our success in the local lettings market is huge. If you’re interested in renting a property in Cardiff, contact our team today on 02920 668585 or email lettings@cpshomes.co.uk.
The information contained within this article was correct at the date of publishing and is not guaranteed to remain correct in the present day.
