Rental Prices Are Strong | Michael Jones Estate Agents

Rental prices are growing across the UK, with the national average reaching another record high of £1,103 after a 1.2% increase in May, and West Sussex is no different. In fact, it is one of the top hotspots for investors in 2022.

The percentage of homes that have been bought by landlords across the country has risen from 12% in Q1 of last year to 13.9% in Q1 of 2022. Investors have bought a grand total of £8.5bn worth of property in the first three months of this year alone, which is the highest recorded Q1 proportion since investors rushed to beat the 3% stamp duty on second homes back in 2016. Therefore, it’s no surprise to see rental prices also increasing in our local areas.

London used to be the place to invest in, but hefty property prices in the capital have led hundreds – if not thousands – of landlords to look elsewhere, and West Sussex is an area that is particularly favourable.

There are a lot of reasons for this, like getting more land for your money, coastal living, and the return on investment that the area offers its investors. London’s rental figures are, of course, bigger on average, but it takes investors years longer to see profits – meaning the areas we operate in are much better for speedy returns on investments.

 

Why keep your investment properties?

Because house prices continue to climb, many landlords have been considering selling their properties. Despite this, however, the following factors may encourage investors to reconsider their decision to sell:

  • Capital growth benefit: the growth in value of an asset over a period of time. This grew by a national average of 10.2% in the year to May 2022.
  • Capital gains tax: tax taken on the net profit on the sale of non-inventory assets when selling (10% for gains qualifying for Entrepreneurs’ Relief, and 28% for Capital Gains Tax on property where the Annual Tax on Enveloped Dwellings is paid).
  • Recent increases in rental prices: the average West Sussex rental apartment now brings in £1,136pcm, with houses raking in £2,006pcm. Overall, the average rental property earns £1,471pcm. Rents are predicted to continually increase in the next twelve months.

In short, it is worth keeping hold of your investment properties because the market continually shows that price increases in every market sector won’t stop as we enter the second half of 2022. Also, while rental prices in West Sussex are increasing, tenants will not hesitate to move here because of the multitude of benefits including value for money and a better quality of life.

 

Why choose Michael Jones?

Since our inception in 1991, we have established a reputation of being one of West Sussex’s most reliable, caring lettings agencies who always deliver for our customers. James Catlin FARLA, the Lettings manager in Worthing, talks about this exact subject:

“While our company may have grown in size over the years – we now secure tenants for around 1 in 4 properties that become available in the local area!-  our core values have remained the same. We strive to provide a personal, professional service that we can be proud of and we believe this is why so many of our clients choose our services time and time again. Take a look at our 5* rated Trustpilot reviews to hear what our customers have to say.”

Our team are experts in helping landlords, new or experienced, maximise their properties’ potential in this current, robust lettings market. Whether a customer only has one property or an entire portfolio, we treat everyone with equal care and attention to ensure that no stone is left unturned in our quest to provide the perfect letting experience for you, and the perfect renting experience for your tenants.

Are you interested in letting a property in Worthing and the surrounding areas? Thinking of entering the investment market? Contact our team on 01903 213111 to start your new chapter today!


Content accurate at time of publishing.

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  • Avatar Sarah C ★★★★★ 3 weeks ago
    Being first time buyers, we were full of questions. Michael Jones couldn’t have been more helpful and everyone we dealt with along the way were great, prompt and professional.A special shout out to Jane who worked with us for the longest … More part of the process; she was amazingly helpful, patient, friendly and a brilliant person to have helping you through this. We are settling in now and just want to say thank you!We would recommend.
  • Avatar F K ★★★★★ 3 weeks ago
    I sold my property through Michael Jones & Bacon in Lancing. I found them professional, thorough and very competent to the point that they did more work than my solicitor especially James Adams. I would also like to mention Oliver Strotten … More and Gary Evans for their professionalism. Thanks a lot for your great work.
  • Avatar Chloe Sturges ★★★★★ 3 weeks ago
    We viewed quite a few properties with Michael Jones & Bacon until we found our home. Everyone had great customer service and were really helpful. Although, the star of the show was James! He was friendly, clear and spoke through every … More step with us! He’s been fantastic!! Would definitely recommend.