It’s August, generally one of the busiest months in the rental market and there is a huge shortage of properties for people to choose from in Lancaster and Morecambe.
Across the Uk, people are reporting a shortage in a whole range of sectors. Nando’s have a chicken shortage. Car manufacturers are struggling with parts, builders and joiners are reporting a wood shortage and even M&S are out of stock of Michelle’s favourite bucks fizz! What is the world coming to?
Property is also in short supply and it has now hit the rental market. For every property we advertise we are receiving in excess of 20 applications, for 3-bed homes it can be over 50!
Because of this rents are increasing. Across the Northwest the average rent increase is 4.8%, taking the average rent to £810. In Morecambe however, rents have increased by a whopping 8.1%.
In Lancaster, the average rent now stands at £565 for a house and £596 for an apartment. If you are looking for a 3-bed semi-detached home, you should expect to pay in excess of £750 pcm.
In Morecambe the average rent for a house is surprisingly higher than in Lancaster, standing at £692 pcm for a house but lower for an apartment. The average rent for an apartment is just £474 pcm.
According to the RICS residential survey, tenant demand rose for a fifth straight quarter, with a current net balance of +52% of respondents reporting an increase in demand.
Landlord instructions remain in decline, with a net balance of -20%, the fourth consecutive quarter with a negative reading.
The imbalance between supply and demand has put upward pressure on prices and rents are expected to increase by 3% over the next year.
If you are thinking of investing in property, now is a great time. Rents are increasing and tenant demand is set to soar further as more and more buyers become priced out of the property market. Mortgages are at an at time low. So are interest rates for savings. Should you be investing in property instead?
My name is Josh Heron. If you would like to chat about the local rental market please get in touch. At JDG we are here to help.
Thanks for reading