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Category: Lettings Agents in Bath

A Bath Landlords Perspective on Recent Trends.

Posted on by prateek

Between 2020 and 2022, demand for properties in the UK far exceeded supply. This drove rents to unprecedented levels.

Here in the southwest, for example, the average rent has risen from £913 per calendar month (PCM) in 2016 to £1,339 PCM year to date in 2024.

Despite this, the last 12 months have seen a slight increase in the number of properties available for rent, both nationally and regionally. This is lending to a more balanced market. This article will explore these trends and see if the same is happening within Bath.

NATIONAL AND REGIONAL TRENDS IN BY-TO-LET:

Nationally, the rental market has witnessed a notable shift in the last 12 months. During the pandemic, many factors contributed to the surge in rental prices. There was a migration of people seeking a larger living space and avoiding the disruption of new housing developments. As restrictions eased, the rental market began to show signs of stabilisation. In a bid to help mellow the rising rental prices, there has been a slight uptick in the supply of rental properties.

In April of 2023, the average rent achieved for a new UK rental property was £1,641pcm. By April of 2024, this has increased by 8% to £1,772pcm.

This is a positive sign for rental prices levelling out, as only 12/18 months ago, the increase was in the mid to late teens.

The southwest continues to be ahead in this national trend of rent increases. In April of 2023, the average rent of a new property coming to the market was £1,166pcm. This increased 12.3% in April of 2024, to £1,309pcm.

The increased supply of rental properties has brought relief to tenants, who had been grappling with 20%+ increases in rent per annum for some types of properties over the last few years.

So, landlords, what does this mean for you?

Despite this rise in supply, the demand for rental properties continues to remain very robust. This ensures that yields continue to be attractive for landlords.

THE BATH RENTAL MARKET:

On a local level then what is going on?

Well, a similar trajectory can be seen here in Bath. Post-pandemic, rents have been surging due to that imbalance in supply and demand for rental properties.

For this analysis, we are looking at the first four months of 2023, versus the first four months of 2024. In 2023, 1,227 properties came to market in the Bath area (For this the postcodes are BA1/2) and attained an average rental value of £1,684pcm.

IN THE FIRST FOUR MONTHS OF 2024, 1,158 PROPERTIES HAVE COME ONTO THE RENTAL MARKET ACHIEVING AN AVERAGE RENTAL VALUE OF £1,860PCM, A RISE IN RENT OF 10.5%.

So, for landlords present and future, is buy-to-let a savvy scheme to invest in, in 2024?

Despite recent market adjustments, Bath remains a compelling investment for several reasons. They are as follows:

  • Strong Rental Demand:

Bath’s rental market continues to benefit from strong demand. The city’s attractive location, good transport links, and quality of life make it a desirable place to live, ensuring a steady stream of potential tenants.

  • Affordable Property Prices:

Compared to other regions, Bath offers a relatively affordable price. This combined with solid rental yields and long-term, stable, capital growth, makes it an appealing option for buy-to-let investors.

  • Economic Growth and Development:

Bath continues to experience solid economic growth. Ongoing developments within infrastructure and amenities are not only increasing the quality of life for residents but it is also boosting the rental market by attracting more people to the area.

  • Long-Term Investment Potential:

Recent stabilisation in the rental market suggests a move towards long-term stability. For landlords, this means the potential for consistent long-term rental income and growth over time.

WHAT ABOUT OUR TENANTS IN ALL OF THIS?

Tenants may be feeling concerned about all of this. Burdened by the recent increases in rent, it is important to note that these rent rises have aligned with the rise in inflation over the medium term since 2016. So, in real terms, the cost of renting has not disproportionately increased. However, some tenants are still continuing to struggle due to a lack of rise in wage rates.

There is a glimmer of hope for those tenants wishing for a more balanced market and reduced rate of rent. With more supply leading to more opportunities for renters to find a home that suits their needs and their budgets, it is likely there is more place for tenants to get their rent down.

THE FUTURE OUTLOOK FOR BUY-TO-LET IN BATH:

Looking ahead, the market here in Bath appears poised for continued growth and stability. This is due to the combination of strong demand, affordable prices, and the city’s continued economic growth. Mixing this all together leads to Bath remaining a valuable investment opportunity for potential Landlords.

Now is an opportune time for those sitting on the fence about the buy-to-let market to enter. The local and national stability of rental prices indicates a mature and sustainable market that has reduced risk and volatility.

Bath Property Owners Reap £12,417 Yearly gains since 2001.

Posted on by prateek

Yes, that’s correct. On average, since the start of the turn of the millennium, homeowners in the Bath area have seen gains at an average of 8% growth year-on-year.

A ‘steady as she goes’ restriction in house price increase has been seen over the last few years since the pandemic hit, and this is likely to continue beyond 2024. However, we must look at the LONGER term. As much as we love to look into the short-term gains, the housing market is a medium to long-term investment for many people, so it is important to look at the house prices over this time. So, let’s look into the numbers:

ALL HOMES – (2001) £156,197 –> (2024) £442,791 = +£285,594 (8%/Yr)  

APPARTMENTS – (2001) £116,254 –> (2024) £314,394 = +£198,140 (7.4%/Yr)

TERRACE/TOWNHOUSES – (2001) £139,962 –> (2024) £494,790 = +£354,828 (11%/Yr)

SEMI-DETACHED –  (2001) £193,857 –> (2024) £402,413 = +£208,556 (4.7%/Yr)

DETACHED – (2001) £320,152 –> (2024) £643,462 = +£323,310 (4.4%/Yr)

Now, when looking at these numbers it is easy to forget that there has been 79% inflation over those 23 years, which eats into ‘real’ value. So, taking that into account, the real gains are as follows:

ALL HOMES -> +£158,928 (£6,910/year)

APPARTMENTS -> +£110,262 (£4,794/year)

TERRACE/TOWNHOUSES -> +£197,456 (£8,585/year)

SEMI-DETACHED -> +£116,058 (£5,046/year)

DETACHED -> +£179,917 (£7,822/year)

So, after inflation has been accounted for, the annual profit for an average Bath home stands at £6,910. This also shows that despite events such as the 08/09 credit crunch, which saw house prices plummet by over 15%, homeowners in Bath have still faired well over the longer term.

SO WHAT ABOUT BATH LANDLORDS?

Even though the number of landlords liquidating their property portfolios has increased in the last couple of years and the number of landlords buying is lower than in the 2000’s and the 2010s, there is still net growth in the size of the private rented sector each year. The simple fact is many Bath landlords remain keen on expanding their property portfolios for the longer term, despite current higher tax rates.

Alongside this, the younger generation sees renting as a choice that offers flexibility and alternatives that homeownership does not provide. This means that demand for rentals will keep growing, allowing landlords to enjoy rising rents and capital appreciation.

However, Bath Buy-To-Let Landlords must adopt a more thoughtful strategy to maintain a good return on investment. With changing laws around taxes and the balances in power, achieving returns similar to that of the last couple of decades requires more effort. If you are seeking advice on a long-term goal you have in mind for your property portfolio, then get in touch with our team here.

Bath Rental Market Review: March 2024 Edition – Plus a RESIDE Update!

Posted on by prateek
Bath Rental Market Review: March 2024

Hello and welcome back to the RESIDE blog!

This month Toby brings you all the latest market updates from Bath here at RESIDE, and also lets us know a bit more about the on going saga of the Renters Reform Bill.

Key takeaways from this months update:

  • Avg. time to let: 16.8 days
  • Avg. rent achieved: 99.6%
  • Avg. rent increase: +4.2%
  • Tenant Demand: -1.2%

In other news, we would like to welcome to the team (and the helm of the marketing ship) Alex!

Alex has joined us here to get our marketing to the next level. Be sure to look out for more content on our social channels showcasing the amazing work that the team here at RESIDE do to bring your rental property to the market, alongside some new and improved footage of all our listings.

Until next week folks,

Alex and Toby.

A Look Back at 2023: Insights from Bath’s Private Rental Sector

Posted on by prateek

As we step into a new year, we thought it might be helpful (and a bit nostalgic!) to look back at the bustling world of the private rented sector in Bath during 2023. Whether you’re a landlord, a tenant, or just curious about the local property market, our latest video roundup is here to give you the lowdown.

If you’re interested in knowing average rents in Bath, how long it takes to let a property in the current market, or are looking for a summary of the new regulations introduced over the last 12 months, give the video a watch and drop us a line if you would like to discuss anything further.

Reside is an award-winning independent letting agent in Bath. Please get in touch if you would like to discuss any aspect of letting or managing your property; we would love to hear from you.

Reside’s Commitment to Community: Annual Charity Donations Supporting Local Causes

Posted on by prateek

As the year draws to a close, Reside is honoured to announce our annual tradition of giving back to the vibrant community in Bath that has welcomed and supported us throughout the year. Our commitment extends beyond property, to the people and causes that make Bath and its surrounding areas thrive.

This year, after careful consideration and heartfelt discussions, our team has chosen to support two remarkable local charities: Off The Record Bath & North East Somerset, and Bath City Farm. Both organisations encapsulate values close to our hearts, championing causes that enrich the lives of those in our community.

Off The Record is a beacon of support for the emotional wellbeing of young people. Their tireless efforts in providing free services — counseling, advocacy, youth participation, and more — have a profound impact on the lives of individuals aged 10-25. Through empowerment and guidance, they strive to ensure every young person feels confident and emotionally healthy.

Regarding this partnership, James Brown from Off The Record expressed heartfelt gratitude: “Thank you so much on behalf of all the staff, volunteers, and service users at OTR. This is a tremendous boost to our Young Futures appeal.”

(L-R) Ben Bower, Toby Martin, Stephanie Bell and Lisa Franklin of Reside, with James Brown of Off The Record

Bath City Farm, with its commitment to fostering volunteering opportunities, informal education, and community engagement, embodies principles of healthy living and environmental stewardship. Alison Howell, Communication & Development Lead at Bath City Farm, shared, “This money will really make a difference to the Farm, to our animals, and to the children, young people, and adults that we support through our therapeutic programs.”

At Reside, our directors Toby Martin and Ben Bower emphasise the significance of supporting these causes. “We feel privileged to contribute to the betterment of our community,” says Toby. “Our team is proud to stand alongside these fantastic charities,” adds Ben.

This tradition of giving back is deeply ingrained in Reside’s ethos. We understand that thriving communities are built on collective efforts, and we are grateful for the opportunity to play a part.

As we conclude another year, Reside extends its heartfelt appreciation to all who have made this possible — our clients, partners, and the incredible community we proudly call home. Your support fuels our ability to give back, and for that, we are truly grateful.

More information about Off The Record’s Young Futures appeal can be found here.

More information about Bath City Farm can be found here.

Reside is an award-winning independent letting agent in Bath. Please get in touch if you would like to discuss any aspect of letting or managing your property; we would love to hear from you.

Bath Landlord Conference: Insights, Updates, and Networking

Posted on by prateek

Bath recently played host to an enlightening and insightful gathering for landlords, the Bath Landlord Conference, held at the prestigious Francis Hotel on 22nd November 2023. This event, spearheaded by Reside director and ARLA Propertymark Regional Executive Toby Martin, was an essential evening for landlords seeking to navigate the evolving landscape of property regulations and investment strategies.

The conference commenced with Toby Martin’s comprehensive overview of the local market, providing attendees with a concise summary of recent landlord regulations. These insights were crucial, particularly in light of the recent changes reshaping the landlord-tenant relationship.

Reside director Toby Martin addresses the Bath Landlord Conference

A notable highlight of the event was Mike Hansom’s address. As a Consultant Solicitor at BLB Solicitors, Hansom delved into the intricacies of Section 8 evictions, a topic gaining prominence as Section 21 faces abolition under the Renters Reform Bill. His expertise demonstrated how tenancies will be ended by landlords in the future, offering clarity and understanding amidst the regulatory shifts.

Ellie Donaghy, a professional property investor, brought bundles of energy and passion to proceedings. Her invaluable insights and proven strategies for identifying and maximizing property investment opportunities left attendees inspired and equipped for success in their ventures.

The event, attended by approximately 40 local landlords, fostered an environment of learning and engagement, with many attendees remaining behind to network after the talks had finished.

Stay tuned for details on the next Bath Landlord Conference, set to be announced in the New Year. For landlords seeking to stay ahead in an ever-evolving market, future Bath Landlord Conferences are not to be missed.

Reside is an award-winning independent letting agent in Bath. Please get in touch if you would like to discuss any aspect of letting or managing your property; we would love to hear from you.

Bath Rental Market Review: October 2023

Posted on by prateek

All the facts and figures on the rental market in Bath & beyond from October 2023, plus some significant lettings legislation news.

Reside is an award-winning independent letting agent in Bath. Please get in touch if you would like to discuss any aspect of letting or managing your property; we would love to hear from you.

Bath Rental Market Review: August 2023

Posted on by prateek

All the facts and figures on the rental market in Bath & beyond from August 2023, including a mortgage update from Doug Miller of Lansdown Financial Services.

Reside is an award-winning independent letting agent in Bath. Please get in touch if you would like to discuss any aspect of letting or managing your property; we would love to hear from you.

Bath Rental Market Review: July 2023

Posted on by prateek

All the facts and figures on the rental market in Bath & beyond from June 2023, including some really interesting information about the differing performances of houses and flat on the market.

Reside is an award-winning independent letting agent in Bath. Please get in touch if you would like to discuss any aspect of letting or managing your property; we would love to hear from you.