While there is virtually daily analysis of the UK housing market, not as much coverage is given to the rental market.

At Andrew Lees, we know our local market well, and we have every reason to believe there will be significant demand for rental property as we move forward. If you are a landlord in Bridgwater, and you need assistance in connecting with tenants, we can help.

We keep you informed about the demand for rental property

We also stay in touch with findings and news in the national rental market. It is pleasing to hear leading names in the rental market, and associated industries, speak positively about demand for rental property.

Some of the findings from Fleet Mortgages are as follows:

  • Yields on residential buy to lets in England stood at 5.7% in the final quarter of 2020, which is 0.3% down on the 2019 figure

  • The highest regional rental yield figure was 7.9%, which was achieved in the North East of England

  • The 7.9% figure of 2020 was 1.5% down on the 2019 figure

  • Only the East Midlands and the South West experienced a positive rental yield from 2019 to 2020

  • Fleet say the typical landlord portfolio has eight properties, generating an average rental yield of 5.7%

The stamp duty holiday likely encouraged portfolio landlords to snap up more properties in the final quarter of 2020 than they did in the last quarter of 2019.

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Steve Cox is the chief commercial officer at Fleet Mortgages, and he said; “One of the key themes of 2020 was the post-lockdown house price increases that we saw right across the country, particularly with pent-up demand being unleashed, the supply of properties to market still relatively low, and policies like the stamp duty holiday which, in many cases, produced savings which ultimately were utilised by purchasers in higher offers.”

Steve Cox continued by saying; “Those house price increases have undoubtedly resulted in a dampening of rental yields in almost all the regions Fleet lends in. However, in both the East Midlands and the South West we still saw yearly increases, and both the East Midlands and Greater London posted quarterly rises. The point to make however is that rental yields are still holding up well, with every single region showing yields of five pr cent and above, plus we also envisage that these types of figures are unlikely to drop significantly throughout the rest of 2021.”

Steve Cox also said; “Demand for private rental property remains strong and, coupled with a lower supply level in most parts of the UK due to the lack of social housing available, the options for many tenants lie purely in the private rental space. The research also shows that landlords, in particular portfolio landlords, have looked to take advantage of the stamp duty holiday. We saw an increase in purchase activity in the second half of last year, and the focus is now on ensuring those purchases complete before the deadline finishes at the end of March.”

Steve Cox concluded by saying; “Overall, the outlook for the private rental sector remains positive, and if there is a slight correction in terms of pricing in 2021, we anticipate that professional landlords will seek to add to portfolios in order to meet the increased demand from tenants.”

As an experienced letting agent serving the Bridgwater community, and many of the surrounding areas, we are here to help. We promise to stay in touch with the latest technology, helping our clients to achieve more, and we aim to support the local community as best we can. If there is anything, we can assist you with; please contact Andrew Lees Lettings today.