Given the importance of the rental market in the United Kingdom, it is only natural that people are interested in rental prices. The issue is, it can be difficult to truly determine the level of rental prices in certain areas, and this is for many reasons. When you take an area like Glastonbury, there is a very limited amount of information when it comes to rental options, and this is down to the fact that there are not too many rental properties on offer in the area.

Of course, when supply is limited, and demand is in place, this causes a rise in rental prices but that assumes that there is actually some supply on offer to allow people to rent out property. A quick search in March of 2017 has one online property specialist stating that there is only a total of 11 properties available for rent in Glastonbury. This makes it very difficult to find information and to present information with any degree of confidence or accuracy.

Of these properties, the average rent is £610 and the most popular style of property being listed for rent in Glastonbury is a two-bedroom property.

Many factors impact on the rental market

There has been a great deal of focus on the lettings and property market in the past year, and there have been many factors that have impacted on the market. Brexit is the issue that most people instantly think but the new stamp duty charge for people buying an additional property, introduced in April 2016, had a huge impact on the market. The rate of buying taking place in Q1 of 2016 saw a wave of new property being placed on to the market in the early months of the year and this may have helped to keep rental increases in check. There has also been a thought that many landlords believe that a ceiling is close to being reached with respect to rental fees and income at this point in time.

This may change in the near future as further tax changes affecting landlords and investors are set to be implemented from April but with hindsight, the rental market was more stable in 2016 than many people expected.

It is not as if Glastonbury faces the same situation as many other areas when it comes to the lettings market. There is a notably shorter supply of property, and this means that external factors and forces don’t have as much of an impact as some people would expect. You can see why a lot of experts cite Brexit as a major issue that will impact on property markets but it hasn’t had too much of an effect on the rental market in Glastonbury between 2016 and 2017.

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

• Mail
|
• Web
|
• More Posts(119)

Found in the Mendip district of Somerset, Glastonbury is a town and parish of a population of less than 9,000 people according to the 2011 census. The town has a name that is known all over the world and the spiritual aspect of Glastonbury, and the music festival held annually nearby which bears its name, means that many people have a strong image and identity of what Glastonbury has to offer, without having visited the place.

Transport options are usually a key factor in whether an area is worthy of investing in but with areas like Glastonbury, there is a need to consider what people are looking for. There are bus connections from Glastonbury, linking to destinations like Taunton and Bristol and the A39 provides a good connection to the M5 motorway. This means people can get in, out and around Glastonbury with ease but life in Glastonbury is a perfect way for people to relax and take things easy.

People who are looking for a more sedate lifestyle will find that Glastonbury is a great option, and this is why if you can find the right sort of tenant, there is every chance of achieving success by investing in Glastonbury property.

There is a high level of demand for rental accommodation

Across the country there is a huge level of demand for rental accommodation. There isn’t enough property to go round and many people find that they are unable to obtain a mortgage that enables them to own property. This is the case in Glastonbury as much as it is in cities like London, Manchester and Newcastle. There is also the fact that there is not a lot of rental options in Glastonbury, so when property comes on to the market, there is a high level of demand. This can enable landlords to achieve a higher level of rental income than the property alone would suggest, and this is another factor that makes Glastonbury a great investment area.

As of March 2017, one online estate agency listed the average value of property in Glastonbury as £288,948 while the average price being paid for property at this time was £277,683. This source claims that property prices in Glastonbury have increased by 6.47% in the 12 months from March 2016 to March 2017.

A separate source lists the average value of property in Glastonbury, as of December 2016, at £289,716; so, there is a level of consistency in these figures. It is sometimes hard to judge the movement in property prices in Glastonbury because the limited amount of sales information can often make outlier figures seem more important than they really are but with two different sources suggesting a similar price level, investors can be confident that this is the state of the current property market in Glastonbury.

Anyone looking to invest in an area is advised to review the expected rental yields. In Glastonbury, there is an expected rental yield of 4.75% in a one bedroom property, an expected yield of 4.4% in a two bedroom property and there is an expected rental yield of 3.23% in a three bedroom property. Four bedroom properties offer an expected rental yield of 3.2% and a five bedroom property can offer an expected rental yield of 4.19%.

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

• Mail
|
• Web
|
• More Posts(119)