Residential Rents are increasing in Lancaster & Morecambe

Are you a Lancaster or Morecambe landlord? Maybe you are considering entering the rental market, knowing full well that interests rates in the banks are exceptionally low and that the stock market is currently volatile!

Last week was the first time ever we ran out of houses and flats to let. We look after almost 300 property locally, yet every house was taken. We scratched our heads, wondering what to do for the best. Thankfully, a few people responded to our appeal.

However, we now have a new problem. This the number of people looking for rental property. Take Hestham Avenue in Morecambe as an example. 47 families have applied to let this 3 bed home. How do we say no to 46 people? It will have to be done.

Rental properties are in high demand. The above real-life example shows the shortage of houses currently available. When there is a shortage, rental prices increase. It is a simple case of supply & demand.

As you can see from the graph above, rental prices across all regions in the UK have increased. In the northwest, the increase is 1.2%. Now, this might not seem a lot, however, it is still an increase. Where it becomes more interesting is that locally, rents on a 3 bedroom home have jumped in the region of £50 a month of the past 12months. On a typical house which was £600 pcm, this equates to an 8% increase!

Good quality homes are in high demand, especially with 3 bedrooms. Are you thinking of entering the buy to let market? Do you have a home which we could help you find a great tenant for?

If so, please call us on 01524 843322. At JDG we are here to help.

Thanks for reading