York Rental Market Index – February 2021

Key Headlines:

  • The average rent in York according to Rightmove was £873, showing an uplift of 8.21% from the same time last year.
  • Rents grew year on year in 5 areas
  • The areas where prices fell were:
    YO31 (Heworth, Huntington, The Groves, Layerthorpe) – (11.04%)
  • 196 properties Let Agreed in February 2021, a 5.95% increase from the same time last year.
  • Available stock on the market was 25% greater than the same time last year.
  • 8.79% more properties being instructed to market

Industry insight from Ashley Mehr, Head of Residential Lettings at Churchills Letting & Estate Agents:

“What I find fascinating about our industry and reviewing data is that from month-to-month you can see polarised viewpoints on how the property market is performing. In January 2021’s Rental Market Index things felt a tad bleak (even allowing for seasonality – what with January generally being a less buoyant time in the rental market). To elaborate, in Jan 2021, 5 areas of York on average showed rental value decline whereas more or less the opposite can be said this month indicating a much more positive picture to paint.

Whilst there are a quarter more properties on the market than the same time a year ago, the increase in properties being Let Agreed YOY is promising and most likely down to consumer confidence beginning to return, simply seasonal factors or if we think back to February of last year as the term Coronavirus became more prevalent in our vernacular, at that time may have impacted negatively on the York rental market.

So, what can we expect from the data in the coming months? Well comparing to last years’ figures, one will not need to go on a whim to say we can expect to see a dramatic rise year on year in the number of properties Let Agreed.

With the Chancellors recent Spring Budget announcing that Furlough arrangements have been extended to September 2021, tenants remaining on Furlough may be more inclined to stay put as opposed to moving.

On the flipside, as the Prime Ministers Roadmap end of last month portrayed a light at the end of the tunnel with schools opening beginning of March, major parts of the economy reopening in April and so on, I feel confident in edging back to some semblance of normality.

I am mindful that tenants who work in sectors such as hospitality have had a rough ride over the last 12 months so am in support of their policies introduced to help them make ends meet!

Something which may come as a relief to landlords is that the rumours surrounding increases in Capital Gains Tax have not come into fruition ‘yet’ which inevitably could drive up rents if landlords decide to sell up their properties prior to this change occurring. I’ve mentioned in other articles the general frustration in the sector at the level of government intervention in the Private Rental Sector but as the government seek to recoup the deficit over the last year, I cannot help but feel landlords are the easy target. Just to add this government intervention shouldn’t act as a deterrent in investing in property but rather just a necessity at being savvier with your rental properties and seeking professional advice. Property is still a lucrative asset class with lending continuing to be at an all-time low.”

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