Update on rental prices in Bedford in the past 12 months
With the average selling price for property in Bedford haven risen by 8% in the 12th months between January 2015 and January 2016, the cost of buying property has been put out of reach of more people. This means that there has been a greater level of demand for rental properties but of course, with the cost of buying a home rising, this means that landlords and potential investors have had to shell out more money to buy the home in the first place.
This means that landlords and investors are not just focused on how much they have to pay to buy a home to let out, they want to know what the average rents are and how much they can charge their tenants.
There are a number of different factors involved with rental prices, with the unique nature of every home having an impact but there is a correlation between rental prices in a certain area. This is basic economics because if two similar rental properties are on offer with a wildly different price, potential tenants will be keen to obtain the cheaper property while the other property would be ignored.
Of course, the way the market works, there would be a change in demand or change in the supply price of this situation to eventually balance things out but on the whole, rental prices for a particular area are of a similar nature with only small variances depending on what individual properties offer.
Rents are on the up in the United Kingdom
The good news for landlords is that rent all across the United Kingdom continues to rise with the annual variance between March 2015 and March 2016 for the south east of England rising by 6.4%.For the region as a whole, the average rent in March 2015 was £893 and in March of 2016, the average rent comes in at £950. It is not as though Bedford can compete with some of the high end areas of the south east but its average rent of March 2016 comes in at just over £800, which is a rise on this time last year.
Of course, given the location of Bedford, East Anglia can be as valid a starting point and the average rent of East Anglia in March of 2016 was £802, coming in at the same level as Bedford. The average rental price in East Anglia in March of 2015 was £769, which means that there has been a 4.4% rise in rental prices over the past 12 months.
Due to the variance in figures and the difficulty in pulling correct figures in from different sources, it is hard to say exactly how much rental prices have changed in Bedford in the past 12 months.
However, the overlying evidence of not just the entire UK but in the areas surrounding Bedford suggests that rental prices are on the up and this is a trend that has been in place over the past 12 months. Add in the similar trend in buying prices in Bedford in the past 12 months and there is a great deal for landlords to be confident about when it comes to rental prices in Bedford.