The latest statistics from the Valuation Office Agency (VOA) give a mixed picture of which direction rents have been heading in the last year. Looking at Somerset as a whole, rents have risen a modest 1.08% in the last 12 months to an average £653 per calendar month (PCM).
Rents in the Mendip district have fallen 0.7% to an average £695 PCM, down from £700 in the corresponding period last year.
Looking closely at the data for Mendip, there are some risers and fallers:
- 4 or more bedrooms
Fall of 7.8% to an average £1132 PCM - 3 bedrooms
Fall of 1.1% to an average £794 PCM - 2 bedrooms
Rise of 1.1% to £642 PCM - 1 bedroom
Rise of 3.1% to £494 PCM
It is not surprising to see the rise of some rents as demand outstrips supply. With so many recent regulatory changes, there is evidence the private rental sector has fallen out of favour with some investors in some parts of the U.K. and this will inevitably put upward pressure on rents.
The rise in rents for 1 and 2 bedroom properties could in part be explained by the changing demographics as households get smaller – by 2031 40% of households will be single person households = more demand for smaller properties. This statistic has underpinned advice we have been giving to investors for some time who were looking to purchase a buy-to-let.
Even within the Mendip district there are variations between areas and even between streets within an area so if you are thinking of investing in a buy-to-let make sure you get expert advice to help maximise the return on your investment.
About Tom Morgan
Founder of Jungle Property the multi award-winning letting agent based in Glastonbury, Somerset. I am passionate about property and Glastonbury and about providing the very best advice to anyone who wants the best return on a buy-to-let property investment. For an open and brutally honest opinion on anything in the Glastonbury property market please contact me via tom.morgan@jungleproperty.co.uk
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