Bexley Borough Tenants Feel the Squeeze as Rents Continue to Rise

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As regular readers know, my passion is talking about Bexley Borough property. As a property agent, I like to comment on the property market, which I hope will be of interest to homeowners and buy-to-let landlords alike. This week, however, I am going to highlight the plight of our borough’s tenants, as more and more of their wages are being consumed by ever-increasing rents.
The cost of renting a home in Bexley Borough has broken through the £1,500 a month barrier. The average rent for a property now stands at £1,560 per month, having risen 0.3% last month, making rents for new lets 7.5% higher than 12 months ago.
With retail price inflation for goods and services reducing to 0%, any increase in property values, no matter how small, means that property is still getting more expensive in real terms. Meanwhile, many tenants have given up saving for a mortgage deposit as they are paying so much rent there is nothing left to save. Increasingly, tenants are deciding to rent long term, so the demand for high quality rental properties continues to exceed the available stock.
I believe that rents are an excellent barometer for the local economy and that the recent increase in Bexley Borough rents indicate that our local economy is still on the up. 
Some would argue that the cost of purchasing a Buy-To-Let property in Bexley Borough has been rising steadily. In a previous article I discuss how property prices in Bexley Borough rose by 16%, and that finally rental yields are strengthening for the first time in years to compensate. The mortgage market became more stable when the Tories returned to No. 10 after the mad months of May and June. There are some amazingly low mortgage rate deals at the moment. With returns still extraordinarily attractive, there’s rarely been a better time to invest in rental properties.
However, (there’s always a however!) it’s all about buying the right property at the right price. Not all property types are seeing equal rises in rents and capital growth.  Different parts of the area and different types of property are experiencing quite different changes. 
The bottom line is that you need to take advice and listen to professional opinions. One source of advice and opinion is the Bexley Borough Property Blog where you will see many more articles like this, discussions, and what I consider the best Buy-To-Let deals around, irrespective of the selling agent.
Whether you are a landlord, “Homes Under the Hammer” addict, or a homeowner interested in the local property market, please visit the Bexley Borough Property Blog: www.bexleyproperty.co.uk or, for more information, please call our office on: 01322 559955.

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