Bexleyheath Rentals – Supply Shortage

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A Bexleyheath landlord rang me after reading the Bexley Borough Property Blog. He wanted to know more about current rents in the town, because his agent hadn’t increased his rent for a number of years and he was concerned to know if he was getting the best possible return from his buy to let investment.

Like every other aspect of the economy, the rental market is all about supply and demand. On the supply side, 48 rental properties have come up for let in Bexleyheath in the last 31 days. That sounds a lot until you consider that there are 3,435 rental properties in the Bexleyheath area. Whereas normally about 5% of the rental stock of properties comes onto the market, it’s only about 1.39%! One reason why is the fact that tenants seem to be staying in properties longer.
With this lack of supply, newer tenants have to pay more to secure the property they want. This is the crux of the matter: properties they want. Older properties in Bexleyheath that haven’t been maintained and retain wood chip wallpaper and threadbare carpets from the 1970s have seen rents drop. Tenants want either modern properties with all the mod cons or older style properties presented to an exceptional standard – and they are prepared to pay for the privilege. Rents for top-quality properties in Bexleyheath have risen by 8.9% in the last year. Overall, rents in Bexleyheath are 23.08% higher than in 2008. Any property, old or modern, put on the market in good or excellent condition rents in a matter of days.   
The Land Registry has just released their latest set of data on property values, giving interesting insights into Bexleyheath property values. Throughout the latest set of data, November 2015, property values rose slightly, with 0.1% growth.  This compares to the greater London average property values, which rose by 0.6% in the last month. I’m not concerned by the difference, as the regional and local property values always even out over the months. 
Considering all the statistics, and having consulted with other property professionals, I expect property values in Bexleyheath to rise by 3 to 5% in the next 12 months.  
What does all this mean for our landlord? Every property is unique and, as his tenancy agreement allows him to inspect the property (having given the tenant notice), we will be visiting the property next week. 
For more in-depth thoughts and opinions on the Bexley Borough Property market, visit the Bexley Borough Property Blog www.bexleyproperty.co.uk or give us a call on 01322 559955.

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