Bath's rental market continues to impress despite recent challenges
This month, the lettings industry saw changes begin to mortgage tax relief. Unsurprisingly, various reports have confirmed that the number of investment purchases dropped in March as a result, but noted a flurry of activity between December and February as they tried to get in before April’s deadline. We saw a similar trend when the stamp duty levy of 3% was introduced in April 2016.
However, it’s important to remain focused on the positives of investing in Bath’s property market. Although we don’t know yet whether this will be a short-term pause, Bath’s rental market continued to do very well after last year’s interruption, and it should continue doing so this time around too.
Firstly, house price growth is excellent. Rightmove reported Bath had the highest annual growth for asking prices in 2016, up 17.8% to £485,491. The portal’s latest rental tracker has noted Bath is the 2nd highest region outside of London for average asking prices per month in Q1 2017, up 11.7% to £1,167 from Q1 2016.
Demand for good quality properties is very strong too, particularly from young professionals, and apartments are at the top of their lists. They offer a wealth of character, excellent security and lower maintenance. Apartments are also located in the heart and soul of Bath.
Furthermore, our lettings department has grown over 300% in the last four years and at our first ever landlord seminar last month, past and future landlords were very confident about investing in local property.
Our advice would be to make sure you use a knowledgable letting agent who will inform you about any changes to the lettings industry, and guide you to long-term financial success.