What does the lettings market in Altrincham look like?
What does the lettings market in Altrincham look like?
We read some recent survey findings about changes in renter behaviour and it got us thinking about the lettings market in Altrincham.
Read on to find out how today’s renters have changed. Plus, get the lowdown statistically on everything to do with the lettings market in Altrincham.
Research findings about renter behaviour
Despite a backdrop of record rents and rising household bills, a landlord survey carried out by Rightmove indicates a change in renter behaviour.
– Over the last year, 20% of landlords reported a rise in their average length of tenancy, with the most common average tenancy period being over two years (63%).
– Many landlords have recognised the challenges of rising household bills for renters, with the majority (63%) choosing not to put up rents. This is despite there being triple the number of enquiries than available properties.
– An analysis of 20,000 build-to-rent listings revealed that the feature which has seen the largest increase in renter demand is to have ‘all bills included’, at +36%.
Source: Dataloft, Rightmove (survey of 1,300 landlords).
So, why are renters renting for longer?
Here in Altrincham, demand for good rental properties is high. If you manage to get a good property rental, it makes sense to stick with it for as long as you can.
There are so many challenges for renters today. The issue of affording the everyday bills, including monthly rental payments is an issue for renters nationwide. And here in Altrincham we have some of the highest rents we have ever seen. But people are willing to pay and stay, because of the desirability of Altrincham as a location.
Rental property availability is another issue, especially here in Altrincham. We know families are keen to make a base here in Altrincham. Often they do this as they look for the right property to buy. Whether it’s second-steppers, or re-locaters from overseas, many are looking for a mid to long-term rental property.
It’s always the larger family homes which are snapped up quickly. Especially those close to the good schools which Altrincham is renowned for. But the good news for landlords is, as many offices have opened back up again, we are seeing the take-up of rented apartments increasing.
How much is rent in the Altrincham lettings market?
We have mentioned that the average rents in Altrincham are some of the highest we’ve ever seen. And we can share how this looks like in numbers.
Over the last 12 months (June 2021 to May 2022), the average rent achieved for properties in Altrincham was £1,261 per month. This is a 15% increase compared to the previous 12 month period.
But it’s when you look at the average rents by property type that you can see how expensive some rentals are in this region.
Average rents for apartments, terraced, and semi-detached properties
If we start at the bottom with apartments, the average rent over the last 12 months is £1,088 here in Altrincham. This is an 11.35% increase compared to the same 12 months previously. Meanwhile the average rent for an apartment across the whole of the North West is £711.88, and a lot more affordable.
Altrincham has a large proportion of terraced homes, and the rents for these have reached averages higher than those of a semi-detached property. The average rent for a terraced property in Altrincham is £1,420.32 while a semi-detached property in Altrincham averages £1,408.95. That said, the price increase compared to the same 12 months (June to May) of the year previously is lower for terraced properties at 17.03% and higher for semi-detached properties at 19.90%.
We know Altrincham’s period properties are sought after
We would put the difference in price down to the fact a lot of the terraced properties are a very good size here in Altrincham, plus period properties are very on-trend. The terraced streets are also in excellent locations for the local schools, as well as the centres of Altrincham and Hale, recreation parks and other amenities.
The rental averages for both these property types far exceed the overall North West average. You can compare the Altrincham average rentals to £710.95 for a terraced property and £855.15 for a semi-detached property, in the North West.
Average rents of detached homes in Altrincham
It is detached homes in Altrincham where rental averages are the most staggering. The average rent for a detached property in Altrincham is currently £4,481.40, compared to £1,140.24 across the North West. However, we know that a lot of the detached homes in this region can be classified as luxury. And many of them have become hugely desirable in the last eighteen months as buyers seek space.
The rental price increase for detached properties across the North West reached 13.96% compared to the same period the year before. But for Altrincham, the average rent for a detached property increased by a whopping 68.76%.
Across the last five years, in Altrincham, the average rents on houses have increased by 40.2%. Yet still the region proves popular and rental properties remain in demand.
What type of properties are people renting in Altrincham?
In the last twelve months, looking at data from June 2021 to May 2022, the types of properties people are renting paints an interesting picture.
And it’s clear the massive rents for detached homes are having an impact. Only 3 detached properties were let in Altrincham in the last twelve months. Although we would add that we don’t often see many of the much larger homes in Altrincham coming up for rent.
You might be surprised to learn that only 10 semi-detached properties were let in Altrincham in the last twelve months. Of course, looking at Rightmove’s survey data, it could be that renters simply aren’t moving on from where they currently are.
And what are some of the most popular homes with renters?
Well, it turns out terraced properties were the second most popular, with 33 of them being let in Altrincham in the last twelve months. And leading the way with just over 47%, was apartments. Yes, 41 apartments were let in Altrincham in the last twelve months. Here we see the culmination between more apartments being built and the return to the office having an effect.
How old are the tenants in the Altrincham lettings market?
When we look at the different age groups renting properties in Altrincham over the last twelve months (June 2021 to May 2022), we can see an interesting divide.
The largest proportion of renters comes by way of the 30-39 age group at 34%. This group are likely to be those waiting to buy a property in the region; saving for a deposit or waiting for the right home to come onto the market.
After that at 30.6% is the 18-29 age group. It’s likely that a large proportion of this group are renting the apartments in the region. The average rents for apartments are in line with this age group’s earnings. Plus Altrincham is a great destination for this age group to live in. There’s the chance to shop, socialise, and be able to commute into the city centre for work.
The 40-49 age group make up 24.5% of the age groups renting properties. We think this is a little higher than expected. For example, the figures for the whole North West region have this age group at 11%. We imagine the difference is down to the higher property prices in Altrincham. And perhaps people are renting for longer due to the high property prices.
When it comes to the 50-59 and 60+ age categories, the split is even at 5.4% per age group. These figures are in line with the North West, and as we would expect them to be.
What the future looks like for the Altrincham lettings market
Well, it’s going to remain a challenging time for renters and landlords alike. Despite the fact the Rightmove survey shows many landlords choosing not to put up their rents, we are facing another interest rate hike imminently. This may well force more landlords to increase their rents.
The Renters Reform Bill coming from the government will massively change the way tenants and landlords work, too. Tenants will have more rights including the ability to challenge rent increases they deem unfair. Meanwhile landlords will have to conform to standards such as ensuring homes are in a good state of repair. They will also be unable to ban families with children or those on benefits from renting their property. They must also not refuse on unreasonable grounds, any requests for pets.
Will this new legislation deter landlords? Or will it see a new type of landlord coming to the fore?
We will cover more about the Renters Reform Bill in due course. But it will be interesting to see how it and other changes will impact the Altrincham lettings market.
Are you looking for the ideal property to rent in Altrincham? Or perhaps you are interested in becoming a landlord and buying your first investment property? Maybe you are already a landlord, but you find you are struggling with your tenants, or managing your property portfolio?
Our local property market knowledge and thorough lettings management process makes us a great partner whether you are renting or letting in Altrincham. There’s not much about the Altrincham lettings market we don’t know. Contact us for a discussion about your circumstances today.
All data in this articles comes via Dataloft