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Tag: Landlords

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.

The Great British Garden

Posted on by prateek

This week we wanted to reflect on what can make or break a property for prospective tenants when viewing or searching for a new rental. Time after time we are given requests that the property must have a good garden for the kids, or for couples to have their friends round for a meal in the summer and enjoy a good British BBQ, yes I am talking about the ones where we all go and sit outside in our garden, beers and drinks in hand, to then have to run inside to hide from the inevitable downpour.

So with that being said, the great British Garden, a green sanctuary that reflects the homeowners’ personality and style. Our love affair with our gardens is more than an aesthetic preference; it’s a testament to the value we place on our outdoor space. Whether it is for the kids to run around, families to enjoy a relaxing bathe in the sun, or for the dog to lie on the patio and get a well earnt rest, we all enjoy our time in the garden (at least when it isn’t raining).

As a letting’s agent in Bath, we see firsthand how a well-presented garden can have a significant impact on the appeal of a home to prospective tenants. A beautifully landscaped garden not only captivates potential tenants, but also can be what provides a tranquil retreat away from the hustle and bustle of the 9-5 or the often-stressful times that family life gives us.

These green havens can be the deciding factor when tenants are looking to rent. So, as a landlord, investing time and care into your homes garden can not only be a labour of love, but a savvy decision that will pay dividends when letting out your home.

RESIDE Bath talks with Off the Record – BANES

Posted on by prateek
Toby’s interview with the wonderful people from OTR.

Recently RESIDE Bath’s General Manager, Toby Martin, sat down and spoke with Off The Record – Bath and North East Somerset (OTR, BANES) to discuss the important work they do in the area to support young people ages 10-25 who are living, working or studying in the area. Currently they support over 2,000 people a year and have over 30,000 contacts on record. So, their work here in Bath is very important.

 OTR are celebrating their 30th anniversary this year and we wanted to show our support. OTR are providing a multitude of services to help every young person struggling, including services such as – counselling, listening support, youth participation, advocacy, support for care leavers and a LGBTQ+ focused youth group. OTR believes that all young people should represented fairly and push a focus on equality for all, regardless of the race, gender or sexual orientation.

If you want to hear what James, Ella and Andros had to say to Toby about their experiences working with Off the Record alongside their own personal experiences and how we can all help make a difference then the video is attached, and you can sit down and watch right here within this blog.

If you want to learn more about OTR and what they do for our local community then visit their website, take a look and see if you can get involved.

Find out more about Off the Record

What to read MORE from RESIDE? Click ‘read more’ to see our most recent blog entries!

Continue reading “RESIDE Bath talks with Off the Record – BANES”

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.

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.

Average Bath Rents Exceed £1,600

Posted on by prateek

The private rented sector for both Bath landlords and Bath tenants is facing immense challenges, with a shortage of available homes for rent putting renters under significant pressure.

And you can see why when the average UK rent in 2021 was £1,381 and in 2023 it has been £1,706, an increase of 23.53%.

Let’s look closer to home in the Bath area.

The average rent for homes coming on the market in the Bath area in 2021 was £1,413 per month, whilst in 2023, it has been £1,660 per month.
(BA1/BA2)

You can understand why people are accusing landlords of “widespread profiteering”.

But as always, the devil is in the detail.

This increase in average Bath rent is for new tenancies, not tenancy renewals.

A new tenancy is when a brand-new tenant moves into a home, whilst a renewal is when an existing tenant renews the lease with their existing landlord.

Government data shows that most landlords are not exploiting the mortgage crisis, with 64% of landlords maintaining and 4% decreasing rents to shield renters from the impact on renewal of their tenancy agreement, dispelling the notion that they are exploiting the situation.

Looking at the same Government data, of the landlords setting rents for new tenants, just under half of landlords (45%) stated they increased the rent compared to the previous tenancy with the old tenant, whereas a third (35%) kept the rent they charged at the same level, and surprisingly 1 in 12 (8%) decreased the rent.

Therefore, whilst the average percentage growth in Bath for new tenancies is 17.5%, the overall average for all tenancies is only 4.6% for Bath.

And 4.6% is much lower than the rate of inflation.

Contrary to popular belief, landlords’ profit margins have significantly dwindled in recent years. The profits for private landlords are at their lowest since the Credit Crunch due to rising mortgage rates and limited tax relief. This demonstrates that private landlords are not profiteering during the cost-of-living crisis.

Now some of you will say, Bath house prices have risen in that time. Yes, that is the case, yet not by the rate of inflation, so in fact in ‘real’ terms, their investments have gone down in value.

Landlords are often portrayed negatively in the media but are in fact making considerable efforts to provide safe and secure housing for millions of tenants.

Landlords face growing costs, including increased mortgage payments and the negative impact of a tax system that discourages investment in the rental market. These challenges are further exacerbated by ongoing uncertainty surrounding reforms to the law regarding landlords.

With limited options available, landlords must choose between leaving the private rented sector, increasing rents as a last resort, or absorbing mounting costs. However, the latter is nearly impossible for most individual landlords who lack deep pockets. To address these challenges, the Government must provide crucial support to the rental market.

To alleviate the burden on renters, the Government should reconsider current taxes which are designed to discourage landlords from providing more rental homes. It is vital to ensure that the supply of rental properties does not further diminish, as Bath tenants simply cannot bear the consequences of a dwindling market and it will lead to further housing hardship.

Without proper government support, both renters and landlords will continue to face challenges, caught between a rock and a hard place.

Housing is such an important thing (rather like the NHS), and I would urge all parties, to move beyond rhetoric and take positive action to support the private rented sector.

I know many Bath landlords who are making sincere efforts to shield Bath renters from the mortgage crisis, and it is crucial their contributions are recognised.

By fostering an environment that encourages investment and providing support to renters, the Government can help alleviate the strain on both landlords and tenants and ensure a sustainable and fair rental market for all.

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.

Bringing Bath Landlords Together: A Successful Meet at the Bath Landlord Summer Conference

Posted on by prateek

Bath landlords came together for an evening of insightful discussions and valuable takeaways at the Bath Landlord Conference held on 26 July 2023, at The Francis Hotel. The event, attended by around 50 enthusiastic landlords, proved to be an engaging platform for industry experts to share their knowledge and expertise.

Toby Martin, the director of Reside Bath and West Country Regional Executive for ARLA Propertymark, hosted the evening and shed light on the intricacies of the local rental market, particularly focusing on the imbalance between property supply and tenant demand.

Michael Tatters, a Partner at Thrings Solicitors, captivated the audience with an in-depth exploration of the Renters Reform Bill and its impending impact on landlords. Attendees were given ample opportunity to raise questions and discuss their concerns, ensuring they were well-prepared for the legislative changes ahead.

Adding a dash of practicality to the conference, Ben Stokes and Michael Skeath from Elite Consultancy Group delivered an engaging presentation on landlord compliance. Their valuable tips and tricks provided landlords with actionable steps to fulfill their legal obligations, steering clear of fines and penalties. Their presentation sparked interactive discussions and left landlords equipped with tools to enhance their compliance efforts.

Attendees actively participated in spirited discussions and posed thoughtful questions to the expert panel, all of which were met with insightful responses.

“We’re thrilled to witness such enthusiasm and engagement from the local landlord community,” said Toby Martin, reflecting on the event. “Our aim is to provide a supportive space for landlords to learn, connect, and stay ahead in the ever-changing private rental landscape.”

Plans for the next Bath Landlord Conference later in the year are already underway. Stay tuned for updates on the next Bath Landlord Conference by visiting www.bathlandlordforum.co.uk.

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: May 2023

Posted on by prateek

All the facts and figures on the rental market in Bath & beyond from May 2023, including a close look at how long it takes to let a property and what that tells us about the current 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.