As we approach the half way stage of 2011, I'm pleased to update landlords on Market conditions in both Northampton and Rugby. At a general level, the number of tenants leaving (giving notice) has been significantly down on recent years, with the result that there's a general shortage of properties rather than tenants.
Northampton
Demand remains high for all properties up to £995PCM - the market becomes slower as you get into the £1000+ bracket. Condition is certainly a factor - whilst there is an overall shortage of property, anything that is poor or dated condition will still struggle to find a tenant or command a decent price. Rents have risen slightly, not massively, with the exception of the 2 bed flat market - these continue to rent well, but as they are in such plentiful supply, prices haven't really moved. There is significant demand for properties that will accept housing benefit tenants, and most landlords who are currently buying property are doing so to cater for this market, due to high yields.
Rugby
There is a serious shortage of property in Rugby, especially at the lower end - properties that will rent for less than £650PCM. The market is more driven by price than condition - tenants have less choice, so properties don't have to be ultra-modern inside. Rents have risen about 10% as a whole, since this time last year. We're finding investors haven't bought much in Rugby in recent months as yields haven't been that great. There are signs of the market softening at the moment, so this may change in months to come.
Richard.
Richard.
