The next five years will see an interesting change in the Boston property market.
Our recent research has concluded that the rent private tenants pay in Boston will rise faster than Boston property prices over the next five years, creating further issues to Boston’s growing multitude of renters. In fact, my examination of statistics forecasts that:-
By 2022, Boston rents will increase by 21%, whereas Boston property values will only grow by 17%.
Let us explain why we have come to those conclusions:
Over the last five years, property values in Boston have risen by 16.7%, whilst rents have only risen by 7.1%.
Throughout the last few years, and compounded in 2016, tenant demand for rental properties continued to go up whilst the Press predicted some landlords expect to reduce their portfolios in the next couple of years, meaning Boston tenants will have fewer properties to choose from, which will push rents higher.
Landlords have some intriguing challenges ahead of them in the coming years most notably in that the Tory’s have changed the taxation rules for landlords in the way buy to let properties are to be taxed. On top of that, there is still the ban on letting agent fees which is still to come into force, probably in 2018.
When that happened in Scotland in 2012, Scottish letting agents passed on those fees to their landlords, who in turn increased the rent they charged to their tenants.
As we have mentioned in previous articles, the number of properties on the market in Boston remains close to historic lows, which is both good as it keeps houses prices relatively stable, yet not so good as it impedes choice for buyers… and hence why we believe property values in Boston will only be 17% higher in five years’ time.
Whilst on the other side of the coin, with the challenges facing landlords and the significant shortage of new homes being built, Boston people still need somewhere to live. If those people aren’t buying houses and the local authority aren’t building council houses in there thousands, because they have no money, with the average rent for a Boston rental property currently standing at £655 per month …
Over the next five years, I predict the average rent in Boston will rise to £793 per month
These are interesting times. There is still money to be made in buy to let in Boston – Boston landlords will just need to be smarter and more savvy with their investments. If you are looking for such advice and opinion to help you meet those investment goals please give the Boston Lettings Department a call on 01205 352019 or visit our website http://www.hillandclark.co.uk/