Watford has been a popular spot for property buyers, and tenants so far are known as a great investment due to its easy access to London. According to research, Watford is the finest commuter town in London for investment owing to the high standards of lifestyle, opportunities for employment, offers quality education, well-established transport, and extensive green lands.
To acquire homes at the best prices investors and landlords looking for buy-to-let properties must work with long-established lettings agents in Watford with extensive experience in dealing with quality residential property.
Recent trends in rent increase:
After a slump during the pandemic, the UK is observing the fastest increase in renting rates in the past seven years. Residential rental prices paid by residents in the UK climbed by 2.7percent until April 2022, the highest rate of annual growth since data collection began in January 2016.
The average rent in Watford was £1,164, according to a survey of rental properties conducted between September 2020 and September 2021. Watford’s rent is £266 more than the average rent in England of £898. Between September 2020 and September 2021, the annual growth of rent in Watford was reportedly 5.2%. With this rate, the average rent in 2025 will be £1,428.
In March of this year, the top professional organisations for letting agents reported a significant imbalance between supply and demand, with more tenants looking to rent properties with few choices to move. The rent in Watford varies according to property type, with rates starting at £583 for a single room and rising to £1,926 for a house with four or more bedrooms.
Why is the rent rising?
The quick explanation is that affordable housing is scarce, which is why rent is so high and increasing. There is a housing crisis in the United Kingdom because successive governments have not constructed enough homes in recent decades. The social housing estate stocks were sold off to the private market through Right to Buy or destroyed and not replaced.
However, the private rental industry has stepped up to fill the void created by the government. While the number of individuals dependent on the sector for a house in England decreased between 2016 and 2019, it increased after the COVID-19 pandemic.
Due to a scarcity of rental houses and high demand for those that are available, an increasing number of renters are preferring to extend their leases and stay put instead of finding another property in a competitive housing market.
What does it mean for Landlords?
All landlords must remain updated on market developments. It’s critical to understand the housing market if you want to buy a new home or raise your rentals. Buy-to-let landlords must be organised, conduct research, promote the property to the appropriate target group, and deal with renters professionally.
Rising rents and stagnating income make it more difficult for renters to save the payment required to rent the space. The renter may choose to live with roommates in order to afford to pay the landlords. Landlords may need to reconsider how much revenue a renter requires. To get a more realistic rent-to-income ratio for acceptance criteria, you may need to examine it on a market-by-market basis.
It’s more crucial than ever to check a prospective tenant’s credit and payment history to discover how they handle their finances. You must confirm that an applicant can satisfy their financial responsibilities to avoid future payment issues.
On a final note:
Being a Landlord in Watford amid rising rents is a huge opportunity as more and more people are looking for affordable spaces to rent. However, with stagnant income and increasing rents, screening and legislative requirements for letting properties can also vary. Consider making this process easier for yourself by leveraging expert lettings agents in Watford.
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