Average Rent Paid by Tenants in Crawley rise to £1,335 per month

Back in the Spring, there was a surge in Crawley landlords buying buy to let property in Crawley as they tried to beat George Osborne’s new stamp duty changes which kicked in on the 1^st April 2016. To give you an idea of the sort of numbers we are talking about, below are the property statistics for sales either side of the deadline in RH10.

Jan 2016 – 88 properties sold

Feb 2016 – 71 properties sold

March 2016 – 129 properties sold

April 2016 – 69 properties sold

May 2016 – 72 properties sold

Normally, the number of sales in the Spring months is very similar, irrespective of the month. However, as one can see, this year was a completely different picture as landlords moved their purchases forward to beat the stamp duty increase. You would think that even with a basic knowledge of supply and demand economics, rents would be affected in a downwards direction?

However, there appears to be no apparent effect on the levels of rent being asked in Crawley - and more importantly achieved - and this direction of rents is not likely to inverse any time soon, particularly as legislation planned for 2017 might reduce rental stock and push property values ever upward. The decline of buy to let mortgage interest tax relief will make some properties lossmaking, forcing landlords to pass on costs to tenants in the form of higher rents just to stay afloat. Even those who can still operate may be deterred from making further investments, reducing rental stock at a time of severe property shortage.

.. but it’s not all bad news for tenants. Whilst average rents in Crawley since 2005 have increased by 22.6%, inflation has been 38.5% over the same time frame, meaning Crawley tenants are 15.9% better off in real terms when it comes to their rent (which is a sizeable chunk of most people’s monthly household budgets)

Year	Average Rent in Crawley per month
2005	1088
2006	1114
2007	1138
2008	1176
2009	1194
2010	1177
2011	1206
2012	1233
2013	1251
2014	1270
2015	1298
2016	1335

I found it particularly interesting looking at the rent rises over the last five years in Crawley, as it was five years ago we started to see the very early green shoots of growth of the Crawley economy.  As a whole, following the Credit crunch (2011), rents in Crawley have risen by an average of 2.4% a year – fascinating don’t you think?

The view I am trying to portray is that while renting is often portrayed as the unfavorable alternative to home ownership, many young Crawley professionals like renting as it gives them adaptability with their life. Rents will continue to rise which is good news for landlords as buy to let is an investment but, as can be seen from the statistics, tenants have also had a good deal with below inflation increases in rents in the past. It’s a win-win situation for everyone although on a very personal note, it’s imperative in the future that tenants are not thwarted from saving for a deposit by excessive rental hikes – there has to be a balance.

Crawley Housing Crisis? Only 1.4% of Crawley Homes Are For Sale

The Crawley Property Market continues to disregard the end of the world prophecies of a post Brexit fallout with a return to business as usual after the summer break.

The challenge every Crawley property buyer has faced over the last few years is a lack of choice – there simply hasn't been much to choose from when buying (be it for investment or owner occupation). Levels are still well down on what would be considered healthy levels from earlier in this decade, as there is still a substantial demand/supply imbalance. Until we start to see consistent and steady increases in properties coming on to the market in Crawley, the market is likely to see upward pressure on property values continue.

For example, in last few months RH11 has seen an average of 115 new properties coming on to the market, not bad when you consider within the last year the average has been as low as the mid 70’s. With the average Crawley property value hitting a record high, reaching almost £321,300 according to my research, this shortage of properties on the market over the last two years has contributed to this ‘fuller' average property figure, but there is a glimmer of hope that the Crawley's supply crisis may be starting to ease.

As I write this article, 1.41% of Crawley properties are up for sale. In terms of actual chimney pots, that equates to 446 properties on the market in Crawley (within 3 miles of the centre of Crawley) – which, when compared to only a year ago when that figure stood at 353, is a serious increase in the number of properties available to buy. Split down into the type of property, it makes even more fascinating reading...

 

·         Detached Properties in Crawley  - 103 on the market a year ago compared to 130 on the market now – an increase of 26%

·         Semi Detached Properties in Crawley - 94 on the market a year ago compared to 120 on the market now - an increase of 28%

·         Terraced Properties in Crawley - 61 on the market a year ago compared to 78 on the market now - an increase of 28%

·         Flats / Apartments Properties in Crawley  - 80 on the market a year ago compared to 99 on the market now - an increase of 24%

With realistically priced properties flying off the shelves and this increase in new properties, this is evidence of strength in the Crawley housing market that many didn't expect.  Many believed that the Crawley property market wasn't going to be strong enough post Brexit - as what was a sellers' market before the Brexit vote and Buyers' market in the early months after it, may now be somewhere in between and the market might just be coming back into balance.

However, all this will mean property values won't continue to grow at the same extent they have been over the last 12 to 18 months, and in some months (especially on the run up to Christmas and early in the New Year), values might dip slightly. This won't be down to Brexit but a re-balancing of the Crawley Property Market – which is good news for everyone.