Category: Lettings

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Nottingham Lettings Update

October 2023 and the Nottingham lettings market is booming.

According to the BBC, landlords are now seeing at least 25 interested parties looking at every individual property.

Looking back at the rental market in 2019, this was down to an average of just 6 parties looking at the same house or flat.

Rental price rises

This news now comes at the time when the average rental price outside of London has hit £1,278 – a new record. This alone is a 10 per cent increase since July.

Looking specifically at Nottingham, the average rental price for those letting their property is £1502 pcm (Homes.co.uk)

Why are rents rising in Nottingham?

Rents are rising in Nottingham for a number of reasons. The city has an extremely large student population and many students are now returning after COVID.

Many individuals, couples and families are also now turning to the rental market since high mortgage rates have made home ownership a distant prospect.

Earlier this year, Benwell Daykin also reported that renting could soon be cheaper than buying in the Nottingham area.

Housing demand outstripping supply

Another reason for such a large amount of applications for each property is that supply is fairly low.

Many landlords are looking to sell due to mortgage rates, tax changes, EPC changes and more. This means that there is a much smaller range of properties for prospective tenants to choose from.

What does this mean for landlords?

If you’re looking at letting a property to tenants then your void periods are likely to be minimal. This should obviously save you some money, especially for those who still have a buy to let mortgage.

If you were considering selling your property then it may be an idea to wait and let it out instead.

How can tenants successfully rent their dream property?

With demand so high, letting agent Benwell Daykin can offer a few tips on how to successfully rent a property.

  • Start looking early to ensure you aren’t left without a home. With 25 parties looking at each rental property, the chances of getting rejected are unfortunately high
  • Ensure you have all your paperwork in place, including ID, payslips and references
  • Calculate your finances and make sure you aren’t out pricing yourself. Remember to include funds for your deposit, bills, furniture and more
  • Set up alerts on Rightmove or Zoopla. This means you will get an email as soon as new lettings properties are listed

Want more lettings information?

Talk to Benwell Daykin who can help both landlords and tenants. Call 0115 990 2007 today. We can even provide free valuations.

We have been successfully matching tenants to rental properties for years and offer free advice over the phone.

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Is it now cheaper to buy or rent a property?

This year the Uk economy has hit some challenges. Energy costs, high inflation, plus much more. With this, house prices have changed and so have mortgage payments.

The latest figures from Nationwide state that house prices have fallen at their fastest rate in August since 2009. Although this sounds like doom and gloom, the average house price back then was £162,112 compared to today’s prices of £286,000. This means that anyone looking to move should still turn a tidy profit.

Although this probably isn’t new news to anyone,  mortgage payments have now increased in line with rising interest rates. For some families, this has seen monthly repayments triple.

So with mortgage payments rising, is it now cheaper to buy or to rent?

The answer, according to property site Zoopla, is it depends where you live!

Currently, those who live in London and the south are likely to now find it cheaper to rent a property.

The average UK rent is £1,163 per month, while average mortgage repayments are £1,285 for first-time buyers with a 15% deposit.

In Ruddington and Nottinghamshire, you are still likely to be financially better off when buying a property instead. The difference though is tiny, with just £56 between the average rental payment and the average mortgage payment.

So why is this?

Put simply, house prices have been much higher in the south for a long time. Historically low mortgage rates meant that buyers could afford larger houses and pay less. Now they’re paying more.

If you are struggling with mortgage payments, please talk to Benwell Daykin who will be able to offer free, impartial financial advice from our fully regulated advisor. We would also be happy to provide a free property valuation to see how much your property is now worth.

Call 0115 990 2007 and talk to our friendly team today.

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The Best Places to Invest In Property In Nottingham

The best places to invest in property in Nottingham

Are you looking to invest in property in Nottingham? As letting agents, Benwell Daykin can help you find the perfect place to buy to let.

Why choose Nottingham?

So you’re likely to have already done your research. Whether you’re local to the city or if you’ve just been looking for high investment yields, you’ll know that Nottingham has what you’re looking for. Property prices in Nottingham have been consistently rising for a long time and the city often has some of the highest growth across the country, month on month.

So why is this? Well, Nottingham is thriving. It’s an epicentre for business and innovation – We have some huge businesses here such as Boots, Experian and Eon which have created many many jobs. Nottingham has the largest teaching hospital in the UK as well, the Queen’s Medical Centre.

We also have a huge student population – an estimated 65,000 students across two universities (Source: Nottinghamshire Live) – Nottingham Trent University and the University of Nottingham.

This just means that people are flocking to the city all the time, and of course they need somewhere to live.

What else does Nottingham have to offer?

Let’s look at why else people would choose to live in Nottingham.

If you’re looking for night life then Nottingham is not to be missed. The variety of bars and restaurants is huge, but that’s not all.

Nottingham is home to some huge sporting outfits, including Nottingham Forest, Notts County, Trent Bridge Cricket Ground, The Nottingham Panthers Ice Hockey and Holme Pierrepont for water sports.

Transportation is also fantastic. We have the NET tram network which goes to many of the suburbs, as well as a quality bus network. We also have the main Nottingham rail station and will soon have an HS2 station in nearby Toton.

Nottingham property prices

Sales Prices

At the time of writing in 2023, Nottingham has seen the highest house price growth across the country in the last 12 months. (Source: Hometrack). This growth currently sits at +10.9 per cent, followed by Manchester at 9.3 per cent and Birmingham at 9.2 per cent.

The average property price now sits at £198,000.

Rental Prices

Average rental prices in Nottingham now stand at £1,319 per month (Source: Home.co.uk). This is across all lettings properties in the city.

If we break this down, the average 2 bed rental price is currently £1,068 and the average 3 bed is £1,298. The average 1 bedroom is currently renting for £823 per calendar month.

Obviously these prices depend on location – You are likely to get higher rents for a 1 bedroom flat, furbished to a high standard, in a popular city centre location.

Which areas in Nottingham should you choose?

Nottingham has many suburbs surrounding the city, all with rental property in high demand.

Nottinghamshire is split into four main boroughs, run by different councils. These are City of Nottingham, Rushcliffe, Gedling, Broxtowe and Erewash.

Bear in mind that almost every property in the City Council region now has a Selective Licensing scheme in place. This means you have to pay a fee every 5 years and meet certain conditions, both with your property and as a landlord. You can find out more about Selective Licensing here.

If you’re looking to rent to students then you generally need to be looking at buying a property either within the city centre, or near to the Nottingham University campus in Beeston.

If families are your preferred tenants then aim for any of the suburbs such as Arnold, Mapperley, Hucknall, Stapleford, Long Eaton and many more.

Looking for more high-end rental properties? The more affluent areas are often said to be places such as West Bridgford, Wollaton, Mapperley Park and The Park.

Of course, there’s also many great villages such as Ruddington where we are based.

Need more rental property advice?

Talk to our friendly lettings team today on 0115 990 2007 or use the contact form below.

We’d be happy to help you find your rental property or a suitable tenant across Nottinghamshire.

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    Rents continuing to push higher in current lettings market

    uk lettings rental prices

    Renters are having to look at renting smaller properties with lower running costs as rents continue to rise across Nottinghamshire and throughout the UK.

    According to Zoopla’s latest quarterly rental market report, the average rent has increased by £115 per month since last year, reaching £1,051 per calendar month – and accounting for 34.4% of the average income of a single earner.

    Why are rents rising in the housing market?

    This surge in rental prices is heavily impacted by a severe supply and demand imbalance. The average letting agent currently has just eight homes available to rent, with the rest of their stock all tenanted and unlikely to change.

    With the cost of living ever increasing, renters do not want to spend extra money moving home.

    Another reason for this is that Landlords are looking to sell some of their properties. This is both down to the cost of living but also with so many legislation changes over the last few years.

    According to Zoopla, currently, approximately 3 in 4 renters will decide to stay in their current property.

    Key rental takeaways

    These are the key facts taken from Zoopla’s research:

      • Renters are choosing two-bed apartments over three-bed family homes to reduce outgoings as the cost of living rises

      • Rents on new lets have gone up £115 per calendar month compared with this time last year, rising faster than wages

      • In a market where demand is massively outstripping supply, rents are likely to keep going up into 2023

    Rental growth has accelerated over the last 12 months from an annual rate of less than 2% in July 2021 to 12.3% today, while rental growth is out-pacing earnings growth in all regions and countries of the UK.  Rental growth is ranging from 7.6% in the North East to a staggering 18% in London – however, there are signs that rental growth is close to peaking.

    How can Benwell Daykin Lettings help?

    As letting agents in Nottingham, we want to strike a balance between helping rents to remain affordable, but at the same time allowing Landlords to make the most from their investment properties.

    We are constantly monitoring market conditions to ensure the best possible rental prices are being achieved on all properties managed in our portfolio.

    Worried about legislation? We take care of this for you!

    We know exactly what it takes to ensure all properties are legally compliant. If a property is managed by Benwell Daykin then all of this is taken care of, without stress.

    Find out more about our lettings services

    You can talk to our friendly team today by calling 0115 990 2007 or by using our contact page.

     

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    Using a Letting Agent vs. Self Managing

    Should you use a letting agent when managing a buy to let?

    When managing a property and renting to tenants, your main aim is to make as much money as possible. This is why you are likely to ask the question if it is worth using a letting agent to manage the property on your behalf. We’ve listed some important factors to take into account when you are deciding if you need a managing agent or not.

    Finding a tenant

    Some landlords do look for tenants themselves. They post their property on various websites and find a suitable person to move into their home. If you are deciding to do this yourself then make sure you reference them through a legitimate company. A reputable letting agent such as Benwell Daykin will reference a tenant in three ways;

    • Work reference (including confirmation of annual income)
    • Credit reference
    • Previous landlord reference

    Complying with all legislation

    Legislation within the lettings industry is extremely important. You’ll need to conduct checks on your tenant and you’ll also need to ensure they can live in your property safely. A ‘right to rent’ check helps you to understand if the tenant is legally allowed to live in the UK.

    An example of other legislation you need to comply with includes:

    • Valid EPC above an ‘E’ rating
    • Landlord insurance
    • Valid EICR certificate
    • PAT test on electrical items left in the property
    • A Nottingham Selective Licence (if applicable)
    • Smoke alarms
    • And more

    To discuss our extensive list of legislation checks, talk to us on 0115 990 2007.

    Communicating with your tenant

    If you manage a property yourself then you must be prepared to communicate with your tenants. This could include having to answer your phone at unsociable hours if there is an emergency maintenance issue. Sometimes tenants may just call or text to ask general questions as well.

    You may want to have a separate phone line for these calls and messages.

    Managing rent arrears

    Unfortunately, sometimes tenants do not pay their rent. This means that you are going to have to do your own chasing which could result in some awkward conversations. If you’re not used to chasing money then this could be daunting.

    Of course, a managing agent will do all of this for you and attempt to keep rental arrears to a minimum at all times.

    Need some more advice on lettings?

    If all of this seems complicated then call our letting agents on 0115 990 2007. You can also email info@benwelldaykin.co.uk. We’ll happily offer some advice with no obligation to use our lettings services.