Zoopla release a quarterly house price index report which details the condition of the UK marketplace, the last one in April showed annual property value growth of 8.4% across the UK with Bristol in the South West increasing 9% and the South West as a whole appreciating in value by 10.5%.
As landlords that means that the value of our assets is increasing well above the rate of inflation and as we know, rents are increasing too.
Current rents in the UK are increasing too as shown by the ONS data below with the median monthly rent now standing at £755.
In the South West the average rent value is currently £770 pcm
A 3 bed house in the Mendip area is worth an average of £900 pcm, use the interactive map below to see what your property might be worth:
Given the war in Ukraine, energy price crisis, inflation and post Covid economy we are expecting some difficulties in the near future which is why we are recommending to all our landlords that they take out some kind of rent guarantee insurance.
There are good ones and bad ones, the one we recommend works directly with the referencing company that we use so they are in agreement that the tenant is credit worthy before the agreement starts.
There are obviously pros and cons, our goal is to deliver you as the landlord consistent monthly rents with as little hassle as possible and this is a part of making sure that happens, it typically costs £26 a month off of the rent total.
We are also looking to use guarantors in most cases now in preparation for the economic difficulties that may follow given the above pressures on the economy.
Property investment is and can be lucrative but you have to remain vigilant, compliant and think ahead in order to deliver the returns consistently over time and that's why, despite the data above showing strong property and rental price growth it's important to look at the headwinds and make sure that we are prepared.
If you want to talk to us about putting your current tenants onto a rent insurance plan, to increase their rent to cover the cost or at least a portion of it and need to know what to do and how to do it please contact us and we will help even if you're with another agent.