It might surprise some readers that the average rent, that tenants have had to pay for a rental property in Cheltenham and Gloucester, are only 4% to 5% higher than the peak of Spring 2008. After the Spring of 2008, when the average rent in Cheltenham was £883 pm and £756 pm in Gloucester, there was a dip in the average rents achieved in both places of around 1.2% by 2009 and again in 2010 by a similar amount.
Interestingly, rents nationally dropped by around 11% to 15% between 2008 and 2010, showing both Cheltenham and Gloucester had good resilience to the general economic woes of the UK at the time. Throughout 2011, rents rose by 3.6% and by just around 5.3% in 2012. Since 2012 to date, there has been a slight reduction in average rents in both places by 1.9%. Today, the average rent of a property in Cheltenham is £923 pm and £790 pm in Gloucester.
This is all still despite the modest rise in wages in both Cheltenham and Gloucester. According to the Government, the average wage in Cheltenham today is £37,744 pa and £28,288 pa in Gloucester, but wages in the South West have only grown by 0.9% in the last 12 months. Demand has remained good
From a landlord perspective, whilst rents aren't keeping up with inflation, with interest rates at an all time low (meaning finance charges are similarly low) and as property values in Cheltenham have seen a rise of over 8.4% in the last 12 months and 5% in Gloucester, and average yields in the 4% to 5% per annum range in both places, landlords must look at the investment as a whole.
Feel free to pop through the door of either of our offices in Cheltenham or Gloucester or email on neil.west@belvoirlettings.com for any advice and opinion on what (or not to buy) for your first, second, third or even thirty third buy to let investment
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