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Horncastle Rents To Rise Quicker Than Horncastle Property Prices In Next 5 Years

Article Simon Jory 2017-03-31
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Horncastle Rents To Rise Quicker Than Horncastle Property Prices In Next 5 Years

The next five years will see an interesting change in the Horncastle property market. My recent research has concluded that the rent private tenants pay in Horncastle will rise faster than Horncastle property prices over the next five years, creating further issues to Horncastle’s growing multitude of renters.

In fact, my examination of statistics forecasts that ...

By 2022, Horncastle rents will increase by 22%, whereas Horncastle property values will only grow by 16%.

Let me explain why I have come to those conclusions:

Over the last five years, property values in Horncastle have risen by 19.3%, whilst rents have only risen by 7.1%.

Throughout the last few years, and compounded in 2016, tenant demand for rental properties continued to go up whilst the Press predicted some landlords expect to reduce their portfolios in the next couple of years, meaning Horncastle tenants will have fewer properties to choose from, which will push rents higher. In fact there appears to be privation and shortage of new rental properties coming on to the Horncastle lettings market.

Horncastle Property Values and Rents

Landlords have some intriguing challenges ahead of them in the coming years most notably in that the Tory’s have changed the taxation rules for landlords in the way buy to let properties are to be taxed. On top of that, there is the ban on letting agent fees which is still to come into force (probably in 2018). When that happened in Scotland in 2012, Scottish letting agents passed on those fees to their landlords, who in turn increased the rent they charged to their tenants.

All I would say to the Government is that they must be wary about indicating both red and green lights at the same time to the private rented sector. They can’t expect the armies of small private landlords to continue to house around a fifth of the population and then tax the hell out of them. They didn’t invest in buy to let as a charity or to satisfy any philanthropic urges. Something has to give – and that will be significant rent rises over the coming few years (and before anyone gives me any derogatory comments about landlords … if it wasn’t for landlords buying all these buy to let properties over the last 15 years, I am not sure where everyone would be living today – because most the Council houses were sold off in the 1980’s!).

With the challenges ahead, with the ‘B’ word (that’s budget if you wondered!), house price inflation will be tempered over the coming five years in Horncastle. The number of properties on the market in Horncastle remains close to historic lows, which is both good as it keeps houses prices relatively stable, yet not so good as it impedes choice for buyers… and hence why I believe property values in Horncastle will only be 16% higher in five years’ time.

Whilst on the other side of the coin, with the challenges facing landlords and the significant shortage of new homes being built, Horncastle people still need somewhere to live. If those people aren’t buying houses and the local authority aren’t building council houses in there thousands (because they have no money), with the average rent for a Horncastle rental property currently standing at £486 per month …

Over the next five years, I predict the average rent in Horncastle will rise to £593 per month.

These are interesting times. There is still money to be made in buy to let in Horncastle – Horncastle landlords will just need to be smarter and more savvy with their investments. If you are looking for such advice and opinion to help you meet those investment goals, one place you can find more information is the Horncastle Property Blog

Sources:

  1. House Price Growth – Land Registry for your District/Unitary/Borough Council
  2. Average Rent – Home website which scrapes every agents website and calculates the average
  3. Rental Growth – The average taken of Homelet/Belvoir/LSL/NetHousePrices websites
  4. Predictions – CW looking at both the press and your town’s historical data - Denton House Research

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MEET THE TEAM

Simon Jory

Simon Jory

Simon has been in Estate Agency for over 32 years and is a Fellow of the National Association of Estate Agents. Having working in all kinds of changing market conditions he is well placed to advise on how best to sell your home.

Anne Pearce

Anne Pearce

Anne prides herself on working to the highest standards and believes everyone should receive the best possible customer service. With over 20 years' experience she will not miss and opportunity.

Dawn Bannister-Law

Dawn Bannister-Law

Prior to moving to Lincolnshire, Dawn was a valuer for more than 19 years in Bakewell in the Peak District. Dawn strongly believes buyers, sellers, landlords or tenants are all as important as each other

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