Rental prices in Surrey are booming
Despite the gloomy economic outlook, the Bank of England’s surprise move to pump £75 billion into the UK economy should work in favour of landlords, according to one senior mortgage expert. David Whittaker, managing director of Mortgages for Business, said that the prospect of the cost of living becoming ever more expensive will force more people into the private rental sector. Sir Mervyn King has insisted that the Bank of England’s move is the right thing to do for the economy as the country faces “the most serious financial crisis” ever seen. But Whittaker believes that King’s view will generally benefit landlords looking to take advantage of a pending rise in rental values, as housing supply struggles to cater for ever growing demand for properties to rent. He comments: “The number of people reliant on the private rental sector will spiral as a result [another round of quantitative easing] and professional landlords and property investors will continue to benefit from the ongoing economic environment. Rates remain low and property prices are stagnating at best and this has given landlords the perfect opportunity to capitalise on high rental demand.” Rents recorded their largest monthly increase in a year during August, the latest buytolet from LSL Property Services shows. In August, the average rent in England and Wales increased by 1.2 per cent to £713 per month, which is £27 higher than in August 2010. David Newnes, estate agency managing director of LSL Property Services, says: "We are in the thick of the busiest time of year for the rental market, and redhot demand for properties is driving rents up at their fastest monthly pace in the last 12 months.” In the last two years, average rents have risen by more than £50 a month. With a big rise in the number of hopeful buyers able to get a mortgage unlikely in the foreseeable future, rents are likely to rise further. Mr Newnes adds: “Competition for rental accommodation will not drop and further rent rises remain on the cards.” On a monthly basis, rental rises across Surrey were among the highest in the country, due to growing demand for homes to rent.
Whether tenants are looking for a property to rent in Weybridge , property to rent in Cobham or a property to rent in Esher, demand and indeed rents appear to be growing no matter where property analysts look across Surrey.
Sharp elbows and top bids are required to secure the best homes and that's just to rent, according to leading estate agents John D Wood & Co. The company report that demand for homes in areas like Cobham, Weybridge and Esher, among others, is rising due to a greater desire among families and professionals to live in Surrey, as it offers the best of both worlds. Surrey is generally seen as a welcome escape from the hustle and bustle of the city, but is still within easy commutable distance to London. A company spokesperson said that prospective tenants are “in the midst of a bidding war”.
In Esher, John D Wood & Co. reports that there are three families for every available property. In Cobham there is a real shortage of smaller cottages at under £4,000 per month. In Weybridge, for example, the supplydemand imbalance is being exacerbated by growing interest from international tenants, particularly from Russia and the United States, wanting to be near the International School.
Whatever happens to the wider UK economy, rental demand for properties in Surrey is unlikely to wane any time soon, and neither are rental values.