What Has Been Happening to East Dulwich Rental Market?
It might surprise some readers that the average rents that tenants have had to pay for a rental property in East Dulwich are only on average 15.1% higher than they were in early 2008. When you consider inflation has been 19% during this time frame, tenants are actually, in real terms, paying less for their rent.
But that doesn’t tell the whole story about the East Dulwich property market. After the Spring of 2008 when the average rent in East Dulwich was £1,527 per month, there was a dip in the rents for East Dulwich property of around 1.5% throughout the Summer and Autumn of 2008 as the credit crunch hit.
Interestingly, whilst East Dulwich rents dropped by 1.5%, the picture was far worse nationally, as rents dropped by around 10% to 15%, depending where you lived. 2009 saw stagnation in rents, but 2010 saw an explosion, with rents rising 10% in one year in East Dulwich.
2011 also had an even bigger explosion, with rents rising by just over 18%. However, 2012 saw average rents drop 11% in East Dulwich rents have settled down, showing a slight dip of a couple of percentage points – but nothing particularly dramatic and likely just a seasonal fluctuation.
There are still plenty of tenants willing to pay for well maintained properties in great locations, especially terraced houses or period built apartments with gardens where they can commute into London within 12 minutes for the price of £696 for a season ticket.
In some outer districts of London, it takes just as long to get into the centre of London, the annual tube season ticket can be as high as £3,000.
As we go into the Winter of 2014/5, average rents in East Dulwich stand at £1,527 pcm. From a landlord’s perspective, the steady rise in rents is good news, as are steady rising property values. Interestingly, property values in East Dulwich have seen a rise of over 17.2% in the last 12 months, so with average yields being 2.8%, even if rents don’t rise, most landlords are achieving a yearly return of 20% a year from their investment. If you would like some advice about buying to let, whether you a landlord with an existing portfolio or someone who is thinking of investing in the East Dulwich rental market for the first time, feel free to pick up the phone to me on 020 3199 3448 or email me on email@example.com