Don’t Get Stuck in the Past: Why Regular Rent Reviews are
Crucial for Landlords.
Imagine this: you bought a two-bedroom flat in Worcester 2
years ago. Back then, it rented for £650 a month. Today, similar properties are
commanding rents closer to £900. Are you capturing the full earning potential
of your investment?
We see it all the time: landlords in the Midlands clinging
to outdated rental values. But the truth is, the rental market is anything but
static. What commanded a premium in Worcester two years ago could be leaving
money on the table today.
Midlands Rents on the Rise
Let’s delve into some local data. According to reliable
sources The Office for National Statistics (ONS), rents across the West
Midlands have seen significant growth in the past five years:
- Birmingham:
Average rent increase of 17.5%
- Coventry:
A jump of a staggering 22.1%
- Wolverhampton:
Rents have climbed by a healthy 14.8%
- Beyond
the Big Cities: Towns like Worcester and Evesham haven’t
been immune to the trend, experiencing growth of 12.3% and 15.1%,
respectively. Even charming Cheltenham has seen a healthy rise of 18.7%
These figures paint a clear picture: the rental market is
dynamic, and failing to adjust your rent accordingly can mean missing out on
potential income. Here’s where the magic of rent reviews comes in.
The Rent Index: Your Local Rental Market GPS
Think of a rent index as your personalised GPS for
navigating the rental market. These regularly updated reports track rental
price fluctuations in your specific town or city, providing invaluable data on
current market trends. Armed with this knowledge, you can confidently adjust
your rent to reflect the true value of your property in Birmingham, Worcester,
Evesham, Cheltenham, or any other Midlands location.
Looking Ahead: Predictions for the West Midlands
While past performance isn’t always a crystal ball, rental
predictions can offer valuable insights. Industry experts anticipate continued
growth in the West Midlands rental market for the next 12 months. With an
influx of young professionals and growing demand for quality housing, rents are
expected to climb by an additional 5-7% across the region.
The Bottom Line: Don’t Leave Money on the Table
Regular rent reviews are not just about maximising your
income (although that’s certainly a perk!). They ensure your property remains
competitive in the market, attracting high-quality tenants who are willing to
pay the current market rate in Birmingham, Worcester, Evesham, Cheltenham, or
any other Midlands town.
So, how much can you actually increase your rent?
Unlike some areas, the UK doesn’t have a national cap on
rent increases for assured shorthold tenancies (the most common type). However,
there is a legal requirement for the increase to be fair and reasonable. This
means considering factors like:
- Inflation
rates (the Consumer Price Index or CPI is a common benchmark) (https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/previousReleases)
- The
condition of the property (significant upgrades could justify a higher
rent)
It’s important to note that tenants have the right to
challenge a rent increase they believe is excessive. By conducting regular rent
reviews and maintaining clear documentation to justify the increase, you can
ensure you’re maximizing your income while staying within legal boundaries.
Ready to Unlock the Power of Rent Reviews?
Here at The Gallery Properties, we’re passionate about
helping landlords maximise their rental returns. We offer comprehensive rent
review services, utilising market data and expert analysis to ensure your
property is priced perfectly, no matter your location.
Contact us today for a free consultation and let’s
unlock the true potential of your investment property!
P.S. Remember, a well-maintained property with
competitive rent is a landlord’s dream. Check out our blog for more tips on
attracting and retaining top-notch tenants!
