Leicester has hit the headlines this week as it experiences the country’s fastest growing rental prices. The average rental growth in the city is growing at almost five times the national average. This is fantastic news for property landlords who will see an excellent return on their investment.
The April 2018 Landbay Rental Index Report has ranked Leicester top in the country when it comes to rental growth. On average, rents in Leicester over the 12 months up to April 2018 have increased by 3.02 per cent, whereas the national average sits at just 0.64 per cent. The average rent in Leicester is now a whopping £647 per month.
According to Landbay’s report, Nottingham came second with a rental growth rate of 2.96 per cent, and Northamptonshire third on 2.44 per cent growth. This goes to highlight the potential excellent returns landlords have on their property investments in the East Midlands.
Several factors have influenced Leicester’s rent growth including government changes to the law. New laws have set out more stringent obligations that landlords must meet, and the costs involved in this are often passed on in rental increases.
One other major factor in Leicester’s rent growth is the lack of supply to meet the increased demand from tenants looking for properties, especially family homes. This demand is fuelled by rising house prices, affordable rents in comparison to national averages, good employment levels, and excellent transport infrastructure. All of this means that there’s no reason why this Leicester trend shouldn’t continue, in fact, some figures are estimating that over the next five years, average rents in Leicester will increase to a whopping £1,094 per month. This means NOW is the perfect time to become a landlord in Leicester.
Sam Carnall from Carlton Estates says “Leicester is an excellent area to let a property. As the Landbay report suggests rental prices are firm and show no signs of slowing down. With the general lack of properties available, we’re agreeing lets quicker than ever and at higher rents than ever.
I’m biased, but I genuinely believe we offer an excellent level of service to our landlords. We manage a large number of properties locally and this number is increasing on a weekly basis. We’ve invested heavily in software and systems, this coupled with a very strong lettings team enables us to deliver a quality service at a competitive price.
If you’re already a landlord, or you’re thinking about becoming a landlord, give our office a call on 0116 284 9636 and I’m confident we can put a package together that suit.”
If you are looking to increase your property portfolio in Leicester, or are just starting out as a landlord, get in touch with Carlton Estates in Narborough, Leicestershire. Their professional team are on hand to offer you the very best advice in helping you to get the most out of your property both now and in the future.
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