As my regular readers know, my passion is talking about Royal
Tunbridge Wells property. As a property agent I like to comment on the Royal
Tunbridge Wells property market, which I hope will be of interest to both
homeowners and buy to let landlords alike. However, this week, I want to
highlight the plight of the tenants of Royal Tunbridge Wells as more and more
of their wages are being taken up by ever increasing rents.
The cost of renting a home in Royal Tunbridge Wells has
broken through the £1100 a month barrier as the average rent for a property in
the town, now stands at £1144 per month, and whilst this was a drop of 1.6 %
last month, rents for new lets are 7% higher than they were 12 months ago.
House price inflation has certainly eased in Royal Tunbridge
Wells from the heady days of 2014, but still with retail price inflation (for
goods and services) reducing to 0% any increase in property values, no matter
how small, means in real terms property is still getting more expensive.
Meanwhile, many tenants have given up saving for a mortgage deposit as rents
continue to take more and more of their wage packets leaving nothing to save
for a deposit. That means, more and more tenants are deciding to rent for the
long term and therefore the desire for decent high quality rental properties
continues to exceed the available rental stock.
I would go as far as to suggest that rents are an ideal barometer
to the state of the local economy as a whole and strongly believe that the
recent increase in Royal Tunbridge Wells rents are a sign that the Royal
Tunbridge Wells economy is picking up.
This means Royal Tunbridge Wells landlords are continuing to
capitalise on the Royal Tunbridge Wells property market. The most recent Land
Registry data suggests the annual property price rises in the town have eased
over 2015, leaving property values 8.41% higher than 12 months ago, so as
property price growth is easing off, with the increased rents, rental yields
are strengthening for the first time in years to compensate. The mortgage
market has become more stable after the mad months of May and June after the
Tory’s got back into No.10, and so, everything is set to be good news for
landlords; even with the Chancellors change of tax rules in the coming years
for buy to let mortgages.
You can get some amazingly low mortgage rate deals at the
moment, so with mortgage rates so low and returns still extraordinarily attractive,
there’s rarely been a better time to invest in rental properties.
However, (you knew there would be a however!), it’s all
about buying the right property at the right price. Not all property types are
seeing equal rises in rents and capital growth.
Different parts of the town, different types of properties are
experiencing quite different changes.
For example, the average length of time the 32 Royal Tunbridge Wells
properties up for rent between £250 to £500 per month is 81 days, whilst the
average length of time the 126 properties at £500 to £1000 per month is 47 days
and 84 properties that fall into the £1000 to £2000 per month price bracket is 42
days.
When you start comparing different parts of Royal Tunbridge
Wells, the numbers are even stranger!
The bottom line is that you must take advice and opinion. One source of
advice and opinion is the Royal Tunbridge Wells Property Blog. In the Royal
Tunbridge Wells Property Blog, you will see many more articles like this,
discussions and even what I consider to be the best buy to let deals around,
irrespective of which agent is selling it.
Whether you are a landlord, ‘Homes Under the Hammer’ addict
or just a homeowner who is interested in what is happening to the local
property market, then please visit the Royal Tunbridge Wells property Blog
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