As the sales market becomes increasingly subdued, the cost of renting a home in the South West has continued to rise as many would-be buyers find themselves unable to take their first steps on the property ladder.
The latest survey carried out by the Royal Institution of Charterer Surveyors states that the cost of renting a residential property in the South West has risen by 2.6% in the last twelve months. The RICS survey goes on to explain that this rise in rents is underpinned by a fall in good quality new properties coming on to the market.
This is a trend that is supported by recent research by Rightmove, whose ‘Little Blue Book’ of property trends states that in the last twelve months alone, search activity for rental property on Rightmove rose by 40% while available stock to rent fell by 3%.
Evidence of the South West’s strong rental market is borne out by a new report published by Endsleigh in which the specialist letting agents’ insurer placed Bath as the fifth priciest town or city for tenants in the UK. According to Endsleigh, the average cost of renting a property in the city is £963 per month – more than £257 above the national average. The report goes on to show the average monthly rent across the UK rose for the third year running in 2011 to £706 – compared with £688 in 2010 and £663 in 2009.
RICS, Rightmove and Endsleigh all indicate that current property trends seem set to continue for the foreseeable future, making this a particularly profitable time for landlords to be letting and investing in property in the South West.