How Much Have Rents In York Increased Over The Last Twelve Months?

In previous articles I’ve mentioned how property is a fantastic asset class for various reasons but one being that it is more often, an inflation beating asset.

For the avoidance of doubt, the term ‘inflation’ in Economics refers to a general rise in the price of goods and services over time.  Another way of looking at this is, £1 today won’t buy you as much as £1 invested tomorrow (in effect, the purchasing power of that £1 coin will diminish).

In real terms, according to the Consumer Price Index, as at October 2009, the Consumer Price Index measured 111.7, whereas in October 2019, this number was 138.6, an uplift of 24.08%.

money in jars.jpg

Looking at property prices in York, according to Land Registry, over the last 10 years, on average, properties were valued at £178,420 whereas they now stand at an average price of £259,452, a 45.42% increase.  Had properties risen in value in line with inflation, they would in fact be worth over £38,000 less than what they are today.

This reiterates what I bang on about all the time in that York property is an inflation-beating asset class.  I’m catching myself go off topic so if you want to know why this is so important, please call me and I’ll explain in greater detail.

So, what’s been happening with rents in York over the last twelve months?  Well according to Rightmove data, some of my findings may surprise you.  As at October 2018, there were 183 properties listed as ‘Let Agreed’ and the average rent was £796.39

As at October 2019, there were 197 properties marketed as ‘Let Agreed’ and these properties rented out on average for £847.57.  As such, rents have risen over the last year alone by 6.43%.  Cross-referencing this with the table below, CPI comparatively rose by only 1.5%.

Ave rents 2018 vs 2019

So which areas in York have performed well over the last 12 months?  Well from the table below which shows average rent prices for properties with a Let Agreed status October 2018 vs October 2019, it tells an interesting story how some areas may have under-performed and others have done significantly well.

Unfortunately, it’s not an exact science as there are factors which could distort these figures. For instance, the quality of rental stock one year to the next, the proportion of different types of rental property.  In general, flats tend to rent for less than detached houses and a newly refurbished done to a nice standard will more than likely rent for a higher price over a flat which is looking tired.

What we can reiterate with greater certainty is property has continued to outstrip inflation making property investment a lucrative investment strategy.  However, to really make your money work for you, you need to consider strongly where to put your hard-earned money.  For any advice, please give me a call and let me see if I can help.

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